Mercer Capital Management is among the leaders in the financial world of Private Placement. Our team is uniquely positioned to leverage Mercer Capital Management’s resources and to match our clients’ financing objectives with high-quality financial and strategic investors. These skilled Professionals have significant experience in raising private capital for late-stage private companies, public entities, corporate spin-offs, acquisition financing and for companies across a range of industries, including oil & gas, power, renewable energy, financial services, health care, industrials, services, real estate, telecom/media/technology and consumer/retail.
Our corporate finance-driven solutions are also complemented by a distinctive marketing approach. We have one of the financial industry’s most effective distribution platforms, including relationships with hedge funds, private equity funds, insurance companies, pension funds, family offices, sovereign wealth funds and bank proprietary principle investment desks. This broad distribution structure creates better pricing, promotes rapid completion of transactions and minimizes management’s time away from their business.
Over the years Mercer Capital Management has closed more than $10 billion in traditional private financings, placing an array of securities from common stock to investment grade debt. Because our private placement professionals are constantly structuring, marketing and negotiating deals, they have access to critical market intelligence that can help clients successfully complete their transactions.
Issuing bonds can be a costly and arduous process for companies to raise capital, so many companies turn to the private placements market. Private placements are the sale of an issuer’s securities to a small number of private investors. Essentially, it is a private loan provided to companies by (mainly) institutional investors, usually with a fixed rate of interest and for a fixed period.
Mercer Capital Management Limited has been an active investor in the private placement market for many years and was one of the corporations that had great success for our clients with the IPO of Alibaba. Making our clients some very good returns on just one trade.
Originally investing on behalf of multinational banking corporations, we have since expanded our activities to include the management of segregated private placement portfolios for third parties, investing in Yen, Dollar, sterling, euro, or a mix of all, in a wide range of transactions.
We believe that over time private placements deliver enhanced returns for fixed income portfolios, both through greater opportunities for diversification, as well as their superior structural benefits in comparison to traditional public bonds.
By their nature, private placements tend to be illiquid, which promotes a longer-term relationship between issuer and investor. The agreement typically contains covenants, which provides additional comfort to investors over the life of the transaction. Maturities usually range between seven and ten years, but can extend to 25 years and beyond, depending on the deal. Issuers can be either rated or unrated, as there is no requirement to have a rating from an agency in order to gain access to this market. For more information on Private Placements please ask your Advisor or contact us at: [email protected]