The Gleacher Mezzanine Funds provide capital in the form of subordinated debt, preferred stock and non-control common equity to middle-market companies. The Gleacher Mezzanine Funds have raised a total of over $775 million of capital and are currently investing a $479 million pool of committed capital. Well-respected institutional investors, including public pension funds and substantial financial institutions, have committed capital to the Funds.

Investment returns typically include interest or dividend payments and a participation in the equity value of the issuer. Although Gleacher Mezzanine may invest in many industries, it prefers to focus on investments in healthcare, manufacturing, distribution and selected services and retail industries. Generally, Gleacher Mezzanine avoids investments in industries with rapidly changing technology, companies with significant commodity price risk and real estate-related companies. Gleacher Mezzanine typically avoids investments in turn-arounds or start-ups.

The Gleacher Mezzanine Funds provide capital for the following uses:

• To fund growth initiatives  
• To fund leveraged buyouts or other acquisitions   
• To fund recapitalizations or partial ownership changes   
• To fund the growth of companies which have exceeded the capacity of senior bank debt  
• To restructure a company's balance sheet with a more appropriate mix of junior and senior capital