This week we continue our conversation with Michael J. Hall, managing partner at Yukon Capital Partners. Yukon provides mezzanine capital to middle market businesses with a focus on deals controlled by private equity sponsors.

Second of two parts – View part one

The Lead Left: How did equity co-investments get started? 

Michael J. Hall: It wasn’t always a feature, it became popular later. Warrants early on were more prevalent. Tacking on warrants became associated with “risk.” Now of course warrants are a rarity, but co-investments are quite common. That separates the sponsored from the non-sponsored assets.