The Shotgun Fund: private equity financing for shotgun clause situations or buy-sell agreements

The Shotgun Fund is private equity financing for shotgun clauses and buy-sell agreements, triggered by shareholder disputes.

Private company shareholder agreements often contain a buy-sell agreement, otherwise known as a shotgun clause.
Under a shotgun agreement, one shareholder may notify the others of his intention to purchase their shares at a specified price. The other shareholders must either sell at that price or purchase the triggering shareholder’s shares at that price.
Typically a shotgun transaction must close in less than 60 days.

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The Shotgun Fund® will purchase common shares from departing shareholders when a shotgun clause or buy-sell agreement has been executed.

We believe that owner/managers are the best valuators of their business. So when one is either willing to trigger a shotgun clause or has received notice that such an agreement has been triggered, the best indication of value has been given — an insider has declared his price. And we’re ready to respond quickly: we can close transactions in less than 5 days of first making contact.

Financing a shotgun transaction need not require additional debt. The Fund will partner with existing shareholders, which minimizes stress on the company’s financial health.

What sets the Shotgun Fund apart?

In addition to specializing in shotgun clause situations, we are one of very few sources of private equity financing for mid-market companies. And we do not pretend to be operators. After an investment has been made, the Shotgun Fund takes a "silent partner" approach: we offer advice as needed and participate through the board of directors, but leave the running of the business to you. You've worked hard to grow your business, and we know you are the best person to continue doing so.

If you are in the midst of a shotgun situation, your bank has pulled its funding, and time is running out: call us. We’ll show you what makes a good partner.