SummitPoint Capital acquires established tool-and-die, CNC machining, and precision manufacturing businesses from owners approaching retirement.
Investors participate strictly as senior secured lenders. You hold debt, not equity. Capital is committed now and drawn only as acquisitions are approved — so your money is not charged 9.00% while it waits.
Being direct about the shape of this, because it determines everything else about the risk you take on.
Noteholders hold debt. There is no equity participation, no conversion right, no profit share, and no governance vote. Your return is the stated interest rate and the return of principal — nothing more, even if the businesses perform well.
This is a blind pool. No target business has been acquired. You are underwriting a strategy and the people executing it, not an existing portfolio with a track record you can inspect.
The sponsors retain 100% of the equity and take the first loss. Their upside comes from the businesses performing, not from fees on capital raised. No commissions or success fees are paid to anyone for selling these Notes.
Michigan's precision manufacturing base is substantially owner-operated, and a significant share of those owners are approaching retirement without an internal successor.
Established revenue, positive or improvable EBITDA, identifiable backlog, manageable customer concentration, and demonstrated capacity to service debt.
Most private note offerings repay everything at maturity. This one is structured to return principal progressively, which reduces how much has to be refinanced at the end.
You make a binding Commitment, generally callable for twelve months. No money moves at acceptance. Undrawn Commitments earn a 1.00% annual commitment fee rather than sitting idle in a fund that has not yet bought anything.
SummitPoint issues a Draw Notice only when a Qualifying Acquisition has been approved. Each Draw creates a separate Note with its own Issue Date, maturity and amortization schedule. Interest at 9.00% begins on that Note's Issue Date, paid quarterly in arrears.
Starting twelve months after the first acquisition, 5% of original principal is repaid annually in equal quarterly installments.
25% of excess cash flow above a minimum liquidity floor is applied to principal. Sweep payments are credited against future scheduled amortization, so a strong year reduces the fixed burden in a weaker one.
Amortization and the sweep are not expected to repay the Notes in full. A substantial balance is expected at maturity, and repaying it will depend on refinancing, asset sales, or new capital. There is no assurance any of those will be available.
The collateral package is not static. It starts narrow and builds as acquisitions close — worth understanding precisely, because the difference matters most in the early period.
The Issuer grants a security interest in substantially all of its assets. At that stage those assets consist substantially of undeployed offering proceeds. No operating business has been acquired, and no acquisition subsidiary exists to pledge.
Each acquisition subsidiary is intended to guarantee the Notes and grant security over its assets, with its equity pledged to the collateral agent. The package strengthens as businesses are acquired and integrated.
Mr. Renaud has hands-on experience running a tool-and-die and manufacturing shop, with responsibility for daily operations, production scheduling, job costing, purchasing, staffing and financial performance. He is an accountant with more than ten years in financial management for small and medium-sized enterprises, and his advisory work covers financial forecasting, capital planning and business restructuring.
Mr. Zelaya led operations for Kodiak Group Holdings, a multi-brand portfolio including Kodiak, Terra, Work Authority and Workrite, and licensed Dickies footwear. He is the owner of Wyckomar Canada Inc., a Guelph, Ontario manufacturer of ultraviolet disinfection systems exporting to more than 70 countries, and a principal of Gamani Group Inc., a Burlington, Ontario advisory practice.
Gamani Group Inc. is an affiliate of Mr. Zelaya and provides marketing and administrative services to the Issuer for a fixed fee — a related-party arrangement described under “Fees and Expenses.” His roles at Gamani, Gamani US Tax & Advisory and Wyckomar are other business activities that will compete for his time.
This is not a complete list. Review the Risk Factors section of the Private Placement Memorandum in full before investing.
Because this offering relies on Rule 506(c), we are required to verify your accredited investor status through independent third-party verification before accepting any subscription. Completing this form is an expression of interest — it is not a subscription and does not commit you to anything.