DCG makes minority investments, on a preferred or priority return basis, into profitable, lower middle market businesses and provides operational support to help grow the business within the government channel. Investments range from $2-$10 Million and typical investment structures include, but are not limited to: mezzanine debt plus warrants, convertible debt, and convertible preferred equity with guaranteed dividends.
Our investment structure is less dilutive than typical venture capital and is an ideal solution for companies (i) with traditional growth curves, (ii) no current plan to sell the business, or (iii) where founders or owners are interested in retaining substantial equity and control.
Investment can be used to facilitate growth into the government channel, buyout a minority investor (including foreign investors), consummate a strategic acquisition, provide existing owners with near-term liquidity, or to bring on an operational partner (DCG) with expertise in the government channel.
National security is not limited to the battlefield. We are interested in any solution that strengthens the security of our nation.
We are industry agnostic, but companies must be commercial businesses first, not primarily defense contractors.
Companies should have already achieved annual revenue of $5 Million as an indication of commercial traction.
Companies should already be profitable, demonstrating a sound business model and ability to service debt investment.
Companies must be headquartered and incorporated in the United States, with majority ownership held by U.S. citizens.
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