Case study

Case study: Advatech Pacific

The Business:  Advatech specialized in providing advanced electronic communication devices to the US military and design / engineering services to the aerospace and defense industries. Advatech’s management held a majority of the company’s equity.

The Situation: In January 2013, U.S. budget sequestration froze a number of key defense programs critical to the deployment of Advatech’s TACDS communications device.

The Financing: In August 2013, MezzCap made an initial investment in the form of subordinated notes and a revenue participation arrangement to provide growth and working capital. In February 2014, MezzCap made a follow-on investment under the same terms and structure.

The Outcome: In April 2017, Advatech’s electronic communication division was sold to General Dynamics Mission Systems and MezzCap realized it’s investment.