Palladium Equity Partners has refinanced Del Real Foods
Del Real Foods
Del Real Foods, based in Mira Loma, California, is a manufacturer of branded and private label heat-and-serve authentic Mexican cuisine products including meats (like carnitas, barbacoa and al pastor), prepared specialty items (like tamales and pupusas), fresh salsas and side dishes. The company sells its products to the club, retail, foodservice and wholesale distributor channels.
The Deal
Since its initial acquisition, Palladium Equity Partners, LLC (together with its affiliates, “Palladium”) and the management team have successfully grown Del Real’s branded product offering and have expanded into several new Hispanic food categories. With the tailwinds across the company’s category, Palladium and Del Real were seeking a refreshed capital structure to support the next phase of growth driven by new product innovation and facility expansion. Lincoln International was able to arrange a one-stop unitranche financing solution that refinanced out the company’s senior and junior lenders at attractive terms.
Mike Axelrod, Chief Executive Officer of Del Real Foods, commented, “Lincoln’s Capital Advisory Group took a collaborative approach with management in conveying the Del Real story to potential investors, resulting in a successful financing outcome. Through its deep knowledge of the capital markets coupled with a well-organized process, the Lincoln team was able to arrange a financing solution to support Del Real’s strategic initiatives.”
Our Perspective
Alex Stevenson, Managing Director and co-head of Lincoln’s Capital Advisory Group, stated, “Lincoln is honored to have been able to partner with Del Real in such a pivotal transaction. We were able to arrange a financing outcome that brought a great financial partner to Del Real who is ready and able to help the company invest in new capabilities and numerous growth initiatives.”
Palladium
Palladium is the oldest minority-owned private equity buyout firm in the industry with $3 billion of assets under management. The firm seeks to acquire and grow companies in partnership with founders and experienced management teams by providing capital, strategic guidance and operational oversight. Since its founding in 1997, Palladium has invested over $3 billion of capital in 38 platform investments and over 160 add-on acquisitions, realizing 23 of these platform investments. The firm focuses primarily on buyout investments targeting $50 million to $150 million in equity. The principals of the firm have meaningful experience in consumer, services, industrials and healthcare businesses, with a special focus on companies they believe will benefit from the growth in the U.S. Hispanic population. Palladium, which is a Certified B Corp, is based in New York City.
Lincoln’s Capital Advisory Group took a collaborative approach with management in conveying the Del Real story to potential investors, resulting in a successful financing outcome. Through its deep knowledge of the capital markets coupled with a well-organized process, the Lincoln team was able to arrange a financing solution to support Del Real's strategic initiatives.
Meet our Senior Team
We structure creative financing solutions for complex transactions in order to maximize optionality and value for our clients.
Alexander Stevenson
Managing Director & Co-head of Capital Advisory
Los Angeles
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