Private Credit Solutions to the Lower Middle Market

Z2 is an SEC-registered alternative investment advisor focused on debt investments to non-sponsored, privately held companies.

Our Story

The Z2 Philosophy

Z2 takes a long-term view and partners with our portfolio companies.

Our name reflects our philosophy on life and investing. Endurance athletes train using heart rate zones. Zone 2, or Z2, is the optimal heart rate zone for those athletes to generate long-term and sustained endurance gains. Z2 is not focused on quick returns, we understand long-term value is created by operating efficiently, putting in a steady effort day-in and day-out to achieve our goals.

We are partners who establish trust, understand businesses’ operations and go beyond being just investors. The relationships we establish are tangible, evidenced by many of Z2’s investors, who include prior owners, operating executives and/or management teams of businesses the Z2 principals have previously invested in.

Our Story

The Z2 Philosophy

Z2 takes a long-term view and partners with borrowers.

Our name reflects our philosophy on life and investing. Endurance athletes train using heart rate zones. Zone 2, or Z2, is the optimal heart rate zone for those athletes to generate long-term and sustained endurance gains. Z2 is not focused on quick returns, we understand long-term value is created by operating efficiently, putting in a steady effort day-in and day-out to achieve our goals.

We are partners who establish trust, understand businesses’ operations and go beyond being just investors. The relationships we establish are tangible, evidenced by many of Z2’s investors, who include prior owners, operating executives and/or management teams of businesses the Z2 principals have previously invested in.

Flexible Services

Tailored Capital Structures for Ambitious Companies

Our focus is on lower middle market, privately negotiated credit and select equity investments. We deliver financing solutions that are delivered swiftly and with certainty.

Direct Lending

  • Cash Flow: Senior Secured / Term Loan A & B

  • Working Capital: Asset Backed, Revolving

  • Structured: Bridge Loan, DIP, Exit

Debt + Equity Co-Investment

  • Preferred Equity: Redeemable, Convertible

  • Common Equity: Minority Ownership

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Investment Criteria

Z2 Values Consistency and Growth in Historical Financial Performance

We pay close attention to the details in order to fully comprehend the purpose of a business and its future. We invest collaboratively with you, designing a bespoke capital structure to meet your specific needs.

01
Companies With a Majority of Operations in the U.S., Across Most Industries.
02
Non-Sponsored (Focus), Independent Sponsor and Sponsor Backed
03
No EBITDA Minimum, $4MM to $25MM focus
04
$10MM to $40MM Target Investment Size
05
We are one of the most experienced lenders to the lower middle market.
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Our Values

A Uniquely Different Investment Experience

01 Trust

We are the most experienced lenders to the lower middle market. Most of our team has spent time as entrepreneurs, executives, and operations managers across a number of industries.

02 Flexibility

Most lenders have a “credit box” – at Z2 we have a blank piece of paper and a pencil. You tell us what you need and we will help you design a capital structure to meet those needs

03 Steadiness

We take a long-term view on our investments and are a steady partner to both our portfolio companies and our investors.

News & Press

Recently from Z2

Investments
September 8, 2023

Transaction Announcement $32MM Preferred Equity Investment

Z2 is pleased to announce it has arranged a $32MM Preferred Equity investment to a business services company.
Investments
August 8, 2023

New Transaction Announcement: $17.5MM Sr. Secured Term Loan Investment

Z2 is pleased to announce it has closed on a $17.5MM Sr. Secured Term Loan investment to an industrial company.
Z2 News
April 10, 2023

Matthew Paige joins Z2

Z2 is pleased to announce that Matthew Paige has joined as a Vice President in Investments.
Z2 News
April 3, 2023

Reilly Mickelson joins Z2

Z2 is pleased to announce that Reilly Mickelson has joined as an Associate.

Ready to discuss your capital needs?

Get in touch for additional information about Z2 Investment Management.