Escalate Management manages private investment funds, focusing on mezzanine investments in privately-held growth companies. They identify and evaluate investment opportunities, negotiate investments, manage and monitor investments, and achieve dispositions. The funds invest in expansion and later-stage companies primarily backed by equity sponsors within the technology and technology-enabled services industries. Escalate's investment strategy includes senior secured loans or senior secured subordinated loans, typically ranging from $3 million to $15 million.
Fee Structure
Escalate Management provides investment advice to private investment funds. They receive management fees in connection with their advisory services. The management fees vary depending on the fund:
- Fund I: Pays 0.5% quarterly of the lesser of the carrying value of debt securities or the aggregate capital contributions. This fee is reduced by one-third of the management fee payable by Fund II.
- Fund II: Pays 0.5% quarterly of the aggregate cost basis of all of Fund II’s investments in active portfolio securities.
- Fund III: Pays 0.4375% quarterly of the sum of Fund III’s Unreduced Regulatory Capital and Assumed SBA Leverage during the investment period. After the investment period, the fee is 0.4375% of the aggregate cost basis of all of Fund III’s investments in active portfolio securities.