C3 provides the layer of a company’s capital structure between senior debt and common equity, commonly referred to as “mezzanine” capital. For companies with a track record of profitability that cannot obtain desired levels of bank financing, raising mezzanine capital is generally a superior alternative to raising additional common equity since mezzanine:

 

  • is typically 1/3 less expensive than common equity
  • is far less dilutive than common equity
  • enables existing owners to maintain control
  • unlike common equity, does not require a forced sale of the company at the time of repayment/redemption

 

Nothing is more important to us than our reputations. We stand by our word and are prepared to be judged by our actions. We have invested in over 60 small businesses since our firm’s founding in 1994, and we invite all potential partners to use our portfolio companies as references. Because of our backgrounds and experience, we understand the needs of small businesses, and, unlike many mezzanine funds which operate as passive investors, we enjoy taking as active a role as needed to help our portfolio businesses achieve their goals.

 

Finally, because we typically invest at least 20% in each fund we raise, we believe our interests are uniquely aligned with both our investors and the portfolio companies in which we invest, which are generally the largest assets of the entrepreneurs we support.

Overview

C3 Capital is a fund management company based in Kansas City, and with a satellite office in Phoenix.  C3 currently manages three funds (C3 Capital Partners, L.P., C3 Capital Partners II, L.P. and C3 Capital Partners III, L.P.), with approximately $460 million in assets that provide capital for businesses to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations. The funds make $3-15 million investments in the form of subordinated debt or preferred equity in established businesses with a history of profitability. All three funds are licensed as Small Business Investment Companies. The General Partner of each fund renders all investment advisory services to the funds from their offices in Mission Woods, KS.