Safeguard Scientifics to Acquire 36% Interest in Penn Mezzanine

Safeguard Scientifics SFE today announced that it has signed a definitive agreement to acquire a 36% ownership interest in Penn Mezzanine, a mezzanine platform which commenced operations in early 2010 with over $30 million of initial fund capital. In addition to this capital, Safeguard will deploy up to $30 million over a several year period in lending opportunities that meet certain predefined criteria alongside existing and future Penn Mezzanine funds. “This strategic partnership represents Safeguard's first initiative to augment its capabilities as a provider of growth capital and to participate in the management of external sources of capital,” said Peter J. Boni, President and CEO of Safeguard. “This initiative is expected to produce management fee income and profit participation. Managed by a team of experienced mezzanine lenders, this platform will enable Safeguard to provide flexible financing strategies to our current and prospective partner companies, as well as other potential borrowers, to build value in their business and ultimately realize that value through a well-timed exit.”