Roynat Capital Solutions: Expert Mezzanine Financing & Private Equity
Roynat Capital, a subsidiary of Scotiabank, specializes in providing sophisticated mezzanine financing and private equity solutions tailored for mid-market companies across Canada. We partner with businesses seeking growth capital, acquisition financing, or solutions for shareholder transitions, offering flexible and innovative funding structures that traditional lenders may not provide.
Our deep expertise in non-dilutive and hybrid capital solutions allows us to bridge the gap between traditional debt and equity, providing the crucial funding required for significant corporate milestones. We understand the unique dynamics of mid-market enterprises and are committed to empowering their strategic objectives through patient capital and expert guidance. Reach us today at the scotiaconnect customer service phone number .
Connect with a Director Explore Our Solutions
Who Roynat Capital Serves: Partnering with Ambitious Mid-Market Businesses
Roynat Capital is dedicated to serving established, growth-oriented mid-market companies with annual revenues typically ranging from $10 million to $250 million. Our clients are often owner-operators, private equity sponsors, or corporate entities seeking flexible capital to execute strategic initiatives. We specialize in businesses with strong management teams, proven track records, and clear growth trajectories that may benefit from specialized mezzanine financing or private equity structures.
We work across a diverse range of industries, including manufacturing, distribution, business services, technology, and consumer products. Our approach is highly collaborative; we act as a strategic partner, offering more than just capital. Our team provides deep industry insights, extensive networks, and a long-term perspective to help businesses navigate complex growth phases, market expansions, and ownership transitions. We pride ourselves on building lasting relationships that contribute to the sustained success of our clients.
Whether you're looking to fund an acquisition, facilitate a management buyout, recapitalize your balance sheet, or invest in organic growth, Roynat Capital possesses the expertise and financial solutions to support your vision. Our flexible capital structures are designed to align with your specific business cycle and strategic goals, ensuring that our partnership creates maximum value without unnecessary dilution of ownership for existing shareholders.
Comprehensive Capital Solutions: Beyond Traditional Lending
Roynat Capital offers a diverse suite of capital solutions designed to meet the unique requirements of mid-market businesses, extending beyond the scope of conventional bank financing. Our offerings include subordinated debt , term debt , and private equity , providing flexibility and strategic advantage.
Subordinated Debt
Subordinated debt, also known as mezzanine financing , is a hybrid form of capital that combines features of both debt and equity. It ranks below senior debt but above equity in the capital structure, offering a less dilutive alternative to pure equity for growth funding. This type of financing is ideal for companies seeking to fund acquisitions, management buyouts, or significant expansion projects without giving up significant ownership stakes. Roynat Capital structures subordinated debt with flexible repayment terms and often includes an equity component, such as warrants, to align interests with our partners. Our typical investment size for subordinated debt ranges from $5 million to $50 million, providing substantial capital for transformative initiatives.
Non-Dilutive Term Debt
Our term debt solutions provide patient capital for long-term strategic investments, such as equipment upgrades, facility expansions, or working capital needs. Unlike revolving credit lines, term debt offers a predictable repayment schedule over a defined period, allowing businesses to plan their finances with greater certainty. Roynat Capital’s term debt can be structured with covenants tailored to your business model, offering more flexibility than traditional bank loans. These solutions are particularly useful for companies looking to optimize their capital structure and reduce reliance on short-term credit. We focus on providing solutions that support sustainable growth without imposing undue operational constraints.
Private Equity Investments
As a leading provider of private equity , Roynat Capital makes direct equity investments in established mid-market companies. Our equity participation can facilitate management buyouts, shareholder liquidity, or provide growth capital for businesses poised for significant value creation. We typically take a minority equity stake, partnering with strong management teams and providing strategic guidance without interfering in day-to-day operations. Our long-term investment horizon allows companies to execute their strategic plans without pressure for immediate exits, fostering sustainable value appreciation. We target equity investments from $5 million to $30 million, always seeking to be a value-add partner.
Hybrid Capital Structures
Recognizing that no two businesses are exactly alike, Roynat Capital excels at crafting bespoke hybrid capital structures. These solutions often combine elements of mezzanine financing , term debt, and equity to create a financing package perfectly aligned with a company's specific objectives and risk profile. This flexibility allows us to address complex situations such as recapitalizations, generational transfers, or highly structured acquisition financings. Our ability to blend various capital instruments ensures that businesses receive the most efficient and effective funding solution, optimizing their balance sheet and supporting their strategic vision. We pride ourselves on our creative approach to problem-solving and financial engineering.
Case Studies: Roynat Capital Driving Mid-Market Success
Discover how Roynat Capital has successfully partnered with mid-market companies to achieve their strategic goals through innovative mezzanine financing and private equity solutions.
Facilitating a Strategic Acquisition in Manufacturing
A rapidly expanding industrial equipment manufacturer sought to acquire a key competitor to consolidate market share and expand its product lines. The acquisition required significant capital beyond what traditional senior lenders were willing to provide, given the integration risks. Roynat Capital structured a flexible mezzanine financing package that complemented the senior debt, providing the necessary capital to close the transaction. Our solution included a deferred principal repayment schedule, allowing the client to focus on post-acquisition integration and synergy realization before significant debt servicing began. This strategic funding enabled the client to become a dominant player in their niche, increasing their revenue by 40% within 18 months of the acquisition.
Our partnership extended beyond just funding; we provided strategic advice during the due diligence phase and assisted in structuring the earn-out components of the acquisition. This comprehensive support ensured a smooth transaction and a successful integration, proving the value of a flexible capital partner in complex M&A scenarios. The client praised Roynat's ability to understand their long-term vision and provide patient capital.
Enabling a Successful Management Buyout (MBO)
The long-standing founders of a profitable business services firm wished to retire and transition ownership to their experienced management team. The management team required substantial capital to purchase the founders' equity stakes. Roynat Capital provided a combination of private equity and subordinated debt to facilitate the MBO, enabling a seamless ownership transition while ensuring business continuity. Our equity investment demonstrated our confidence in the management team's ability to lead the company to its next phase of growth, while the mezzanine component offered a balanced approach to leverage.
This tailored solution allowed the management team to gain significant ownership without excessive personal guarantees, aligning their interests with the company's future success. Post-MBO, Roynat Capital continued to provide strategic support, helping the new owners refine their growth strategy and optimize operational efficiencies. The company has since expanded into new markets and introduced innovative service offerings, securing its position as an industry leader and showcasing the power of well-structured succession financing.
Connect with a Roynat Capital Director Today
Are you a mid-market company seeking strategic mezzanine financing or private equity solutions to achieve your growth objectives? Our experienced team of Roynat Capital Directors is ready to discuss your unique needs and explore how we can partner with you.