I n the same way, Harrison’s group came to HMC because our leadership had already determined they wanted to build a lending strategy around that very approach — and then found the right people to execute. Harrison notes, “One of the most attractive aspects for my group in joining HMC, was the fact that we could all invest our own money in the funds managed by HMC.” The Credit Solutions group typically provides privately-owned companies $3 million to $15 million in subordinated debt for organic 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. The Credit Solutions group primarily supports companies in service and healthcare (delivery and technology), but we have also enjoyed successful partnerships with a number of firms in manufacturing and distribution. When asked how the group evaluates companies, Harrison responds, “We look at everything from recurring revenue and management to who might buy a company when it’s ready to sell.   “When you consider the amount of data we analyze, it’s an extremely complex process. But at the end of the day,” he concludes, “a lot of what we do is simple common sense.” Much like HMC’s approach overall. 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.” PRIVATE CAPITAL Credit Solutions $800 Million Invested in 118 Companies 13.8% Net Internal Rate of Return Across Four Funds 1.69 Net Multiple of Invested Capital 19