Optimal Capital Structure
Typical investment sizes range up to $30 million, with an average transaction size expected between $10-$20 million.
At Black Cap Halcyon, we prefer relatively modest and conservative leverage profiles for our investments. We chiefly use leverage to maintain a flexible balance sheet with access to capital in both strong and weak credit cycles, as well as to provide liquidity to take advantage of opportunistic investments as they arise.
Investment horizons are specific to each opportunity but generally assume an indefinite holding period consistent with our long-term view. We look to a variety of investment return measures in evaluating opportunities and ongoing performance. Generally, we are less focused on IRR metrics than operating cash flow and longer-term asset appreciation.