1. To inject small amounts of cash to carry a company so that it does not run out of cash between successive major private equity financings. 2. To carry distressed companies while searching for an acquirer or larger investor (in which case the lender often obtains a substantial equity position in connection with the loan). 3. As a final debt financing to carry the company through the immediate period before an initial public offering or an acquisition.
What's wrong with this. Matt is helping struggling companies succeed while they are unable to stand by themselves. He is helping them try to become successful. Of course he is there to make money. You would be dumb to think otherwise. BCAP