Chanticleer Holdings said today it is launching the Chanticleer Dividend Fund with an affiliate of CapitalSouth Investments.
Both firms are based in Charlotte.
The fund is a business development company sponsored by a team of asset managers seeking to provide investors principle protection through income-producing private debt and equity securities that are typically not available to the general public, a press release said.
“Many investors have chosen to invest in dividend-generating funds as protection from the instability of today’s capital and credit markets,” said Michael Pruitt, Chanticleer’s CEO.
The fund will focus on issuing first and second lien senior secured loans but also expects to make subordinated loans, mezzanine loans and income-generating equity investments to small- and mid-sized companies.
“Small and mid-sized businesses are the backbone of the U.S. economy and have suffered greatly due to the lack of available financing through traditional financing channels,” Pruitt said. “We believe that there is a tremendous opportunity to invest in established, stable companies with strong cash flow, ultimately delivering the yield and investment protection our clients are looking to obtain.”
Publicly traded Chanticleer also opens Hooters restaurants. Earlier this month, it unveiled plans to open its its third Hooters in Cape Town, South Africa.