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PRIVATE CAPITAL
Credit Solutions
The genesis of the Credit Solutions group, and its approach, is a perfect mirror of HMC’s guiding investment
strategy. “So many firms in our industry form strategies around what’s popular and trendy,” says Managing
Partner John Harrison, “then they’ll go out and raise money. Our approach is to first identify strategies we want
to pursue, regardless of what’s ‘hot’ at the moment, then invest in companies that fit our strategy.”
n the same way, Harrison’s group came to HMC because The Credit Solutions group primarily supports companies in service
our leadership had already determined they wanted to build and healthcare (delivery and technology), but we have also enjoyed
a lending strategy around that very approach — and then successful partnerships with a number of firms in manufacturing and
found the right people to execute. Harrison notes, “One of distribution. When asked how the group evaluates companies,
the most attractive aspects for my group in joining HMC, Harrison responds, “We look at everything from recurring revenue
Iwas the fact that we could all invest our own money in the and management to who might buy a company when it’s ready to sell.
funds managed by HMC.”
“When you consider the amount of data we analyze, it’s an extremely
The Credit Solutions group typically provides privately-owned complex process. But at the end of the day,” he concludes, “a lot of what
companies $3 million to $15 million in subordinated debt for organic we do is simple common sense.” Much like HMC’s approach overall.
growth, acquisitions, recapitalizations or management buyouts. “We
take equity positions in all the companies we invest in,” Harrison
continues, “and then function at a Board level to position the
companies to maximize shareholder value. The more equity we have
in a company, the more hands-on we usually are in our support.
$800 Million 1.69
Invested in 118 Companies Net Multiple of Invested Capital
13.8%
Net Internal Rate of Return Across Four Funds
19
