GMB Mezzanine invests in privately owned middle-market companies with enterprise values from $20 million to $200 million. GMB’s investment size can range up to $25 million, and GMB has led much larger investments by including co-investors. Targeted businesses include the manufacturing, distribution, fabrication, healthcare, aerospace, consumer and business service industries.
We are proud to have been selected by the US Small Business Administration as the 2016 Small Business Investment Company of the Year.
When you need answers, we strive to reply quickly. When you need flexibility, we draw on extensive experience and a nationwide network of strong relationships to tailor a financial structure. co-investment, or plan of action to suit your needs.
The GMB team members over their careers have a combined track record of more than 100 mezzanine transactions totaling over $800 million. They have invested in a wide range of industries, businesses, transaction types, geographic markets and capital structures, across multiple business cycles.
All of GMB’s team members have long been active in private company, middle-market financing. Professional relationships across the country provide a significant base of deal referral sources, portfolio companies and financing partners. Their access to growth opportunities, advisory services and capital sources creates a value proposition that extends well beyond their funding capabilities.
GMB’s staffing is complemented by an Advisory Committee of executives and entrepreneurs with a diverse experience base, drawn from GMB’s limited partner investor group.
We believe that our customers (deal referral sources, equity sponsors, portfolio companies) value responsiveness when searching for a mezzanine capital resource. We focus on:
- Communicating with prompt and informed feedback on all deal referrals
- Meeting our milestone commitments and delivering on time
- Offering alternative ideas, structures and resources when of value
- Identifying the conditions precedent to proposals, thus avoiding subsequent surprises
- Appreciating that each opportunity is unique and sparing you any preconceived responses
You can trust GMB:
- To create and sustain an environment that reflects the best elements of business practice and culture that we have experienced over our many years in the finance business.
- To deliver our best effort every time, sharing resources, ideas and alternatives where they might be of value.
- To communicate consistently, openly and honestly with all parties.
- To make it easy and enjoyable for people to do business with us – and gratifying for our team members to represent GMB in the marketplace.
We will invest in companies led by experienced and committed management teams which can produce the free cash flow required to support the company’s capital structure.
We will entertain:
- A diverse range of transaction purposes
- Private equity firm sponsored buyouts
- Management buyouts
- Acquisition financing
- Growth/expansion needs
- Flexible investment structures
- All-coupon, fixed rate, subordinated notes
- Subordinated notes with warrants
- Tranche B Senior Note structured financing
- Preferred stock
- Minority common stock co-investments
- Alternative roles, participating as
- A sole investor
- A lead investor for a co-investment group
- A co-investor with another institutional investor
Investments ranging in size from $3 million to $25 million and larger through use of co-investment partners. In all cases, our investment will be crafted to fit the unique needs of the equity sponsor, the company in which we are investing and the specific characteristics of their capital structure and growth plan.
Targeted companies will generally possess the following characteristics:
- Manufacturing, distributing, fabrication or service businesses.
- Private and closely held.
- Annual revenues greater than $10 million (based on latest fiscal year).
- EBITDA greater than $3 million (based on latest fiscal year).
- EBITDA margin greater than 10% (based on latest fiscal year).
- Proven and committed management teams.
- Minimal or manageable technology risk.
- A diverse mix of products, customers, geographic markets and suppliers.
- Sound historical financial performance.
We will not invest in the following:
- Dramatic “turnaround” situations.
- Hostile takeovers or other adversarial situations.
- Other investment partnerships.
- Companies based outside the United States.
- Real estate, farmland, mining or oil and gas production.
GMB Mezzanine Capital has operated three successive funds (GMB-I, GMB-II and GMB-III) since 2005 for a cumulative total under management of $715 million. The investment portfolio is well-diversified by industry, sponsor and geographic location. Investment size ranges up to $25 million. Transaction purposes include buyouts, refinancings, recapitalizations, and add-on acquisitions.
Michael D. McHugh
Partner / Founder
Prior to forming GMB, Mike spent nine and one-half years at Churchill Capital, Inc., and became the Managing Principal of the mezzanine investment team. Prior to joining Churchill, Mike worked for approximately 11 years at First Bank (nka U.S. Bank) and three years at Norwest Bank (nka Wells Fargo Bank) in various corporate banking positions. He holds a BS with Distinction from the University of Nebraska (1980) and performed MBA coursework at the University of Nebraska at Omaha.
Carleton L. Olmanson
Partner / Founder
Prior to forming GMB, Cully was a Senior Vice President and Division Manager at U. S. Bank focusing on middle-market leveraged lending. Additionally, he was responsible for originating and managing a portfolio of investments in private equity funds and for select mezzanine and equity investments. He spent over 19 years at U.S. Bank working with both national and middle-market companies providing financing for buyouts, recapitalization and several corporate purposes.
Prior to joining U.S. Bank, Cully was an Assistant Vice President at Norwest Bank (nka Wells Fargo Bank). He holds a BS with Distinction from the University of Minnesota and an MBA from the University of Minnesota.
Daniel J. Hemiadan
Prior to joining GMB in 2005, Dan was a Vice President at Churchill Capital, Inc., responsible for sourcing, closing, and monitoring mezzanine investments. Prior to joining Churchill, Dan worked for the leveraged finance group at U.S. Bank. He holds a BS degree from St. Cloud State University as well as the Chartered Financial Analyst designation.
Michael R. Vossen
Mike joined GMB in 2005. Prior to joining GMB, Mike was an investment banking analyst in the Technology group at Piper Jaffray & Co. and an Associate in the Tax Department at Deloitte & Touche. Mike graduated summa cum laude from the University of Notre Dame with a BS in Accounting.
Judd G. Stevens
Judd joined GMB in 2013. Prior to joining, Judd was at TripleTree Investment Bank, where he focused on transaction execution, business development, and primary research within the Healthcare sector. Judd also spent time in corporate finance with Honeywell International. Judd graduated from the University of Minnesota’s Carlson School of Management with a concentration in Finance.
Seth D. Jonker
Prior to joining GMB in 2015, Seth was an Associate at Wells Fargo, where he focused on providing debt financing in support of private-equity backed buyouts, M&A transactions, and recapitalizations across an array of industry verticals. Seth graduated cum laude from Carleton College with a BA in Economics.
John T. Helms
John joined GMB in 2016. Prior to joining GMB, he spent over four years in the investment management industry and was most recently at Water Street Healthcare Partners, LLC. Previously, he worked at William Blair & Company and interned at Stone Arch Capital, LLC. He completed his BA in Finance magna cum laude at the University of Notre Dame.
Thomas A. Kreimer
Chief Financial Officer
Prior to joining GMB in 2009, Tom spent 17 years with Churchill Capital, Inc., serving as the firm’s Chief Financial Officer for the majority of his tenure. He was responsible for managing accounting, auditing, reporting, investor communications and tax matters for multiple investment funds. Prior to joining Churchill, Tom was a public accountant with Charles Bailly & Company. He is a magna cum laude graduate of the University of St. Thomas with a degree in Business Administration-Accounting. Tom is an inactive Certified Public Accountant.
Jennifer A. Schutz
Jennifer joined GMB as an Accountant in 2016. Prior to joining GMB, she spent over 10 years as a CPA in the accounting firm of Lewis, Kisch & Associates, Ltd., most recently as equity partner. Previously, she worked at Dave S. McCord, Ltd. and H&R Block. She continues to perform accounting and tax work for several nonprofit entities and has served on community and professional task forces, boards and committees. She received her BS in Accounting from Minnesota State University at Mankato.
Beth D. Sullivan
Prior to joining GMB in 2004, Beth was the Office Manager at the Quatris Fund, a Minneapolis-based venture capital firm. Previously she spent two years with Lansing Management and six and one-half years at Churchill Capital, Inc., mostly as Administrative Manager. Prior to joining Churchill, Beth worked for approximately 10 years in law offices as an office manager and legal secretary. She holds a BA summa cum laude from Moorhead State University, performed MA coursework at the University of Minnesota, and holds an MA in Liberal Studies from Hamline University.
- February 2017 Add-ons: $1.0 million of subordinated debt and $319,000 of equity in two add-on transactions for existing portfolio companies of GMB-II.
- December 2016: $2.7 million of subordinated debt and $2.3 million of equity in a new transaction sponsored by a Midwest-based private equity sponsor
- November 2016 Add-ons: $156,000 of equity in an add-on transaction for an existing portfolio company of GMB-II, and $4.3 million of subordinated debt in an add-on transaction for an existing portfolio company of GMB-III.
- October 2016: $5.1 million of subordinated debt and $500,000 of equity in a new transaction sponsored by an East Coast-based private equity sponsor
- September 2016: $10 million of subordinated debt and $1.0 million of equity in a new transaction sponsored by an East Coast-based private equity sponsor.
- August 2016: $9.2 million of subordinated debt in a new transaction sponsored by a West Coast-based private equity sponsor.
- June 2016: $4.3 million of subordinated debt and $216,000 of equity in an add-on transaction for an existing portfolio company.
- June 2016: $7.75 million of subordinated debt and $600,000 of equity in a new transaction sponsored by an East Coast-based private equity sponsor.
- May 2016: U.S. Small Business Administration Selects GMB Mezzanine Capital as the 2016 Small Business Investment Company (SBIC) of the Year. Read Full Press Release.
- April 2016: 12.0 million of subordinated debt and $1.5 million of equity in a new transaction sponsored by a Southern-based private equity sponsor.
- April 2016: $4.3 million of subordinated debt and $1.0 million of equity in a new transaction sponsored by a Southern-based private equity sponsor.
- April 2016: $8.7 million of subordinated debt in a new transaction sponsored by an East Coast-based private equity sponsor.
- April 2016: $5.9 million of subordinated debt and $1.3 million of equity in a new transaction sponsored by an East Coast-based private equity sponsor.
- First Quarter 2016 Add-ons: $325,000 of equity in four add-on transactions for existing portfolio companies of GMB-II and $4.0 million of subordinated debt in an add-on transaction for an existing portfolio company of GMB –III.
- March 2016: $5.6 million of subordinated debt in a new transaction sponsored by an East Coast-based private equity sponsor.
- February 2016: $7.5 million of subordinated debt in a new transaction sponsored by a Midwest-based private equity sponsor.
- February 2016: $5.8 million of subordinated debt and $500,000 of equity in a new transaction sponsored by a Midwest-based private equity sponsor.
- January 2016: GMB Mezzanine Capital is pleased to announce Fund III, in excess of $270,000,000 — Read Full Press Release