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.
An operator with hands-on experience running a tool-and-die and manufacturing shop, covering daily operations, production scheduling, job costing, purchasing, staffing, customer relationships and overall financial performance. That work covered the practical pressures facing owners in this sector: delivery deadlines, material and labor cost control, equipment maintenance, and managing capacity against changing customer requirements.
His advisory background includes financial forecasting, equipment and capital planning, business restructuring, government funding programs, and Canada–U.S. business development.
A principal of Gamani Group Inc., a Burlington, Ontario advisory practice providing Canada–U.S. tax and accounting services alongside its U.S. affiliate, Gamani US Tax & Advisory. His work spans strategic advisory, business development, financial structuring and operational improvement for small and mid-sized businesses.
He is also the owner of Wyckomar Canada Inc., a Guelph, Ontario manufacturer of ultraviolet disinfection systems that exports to more than 70 countries. Both companies are affiliates of a principal and are disclosed accordingly.
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.