INVESTMENT STRATEGY

Investment Strategy
  • Partnership philosophy by working alongside existing ownership / senior leadership team to implement a comprehensive growth strategy
  • Value orientation with particular emphasis on long-term company performance and predictability
  • Buy-and-build approach with no pre-determined investment period
  • Conservative stance on capital structure and operational risk
  • Long-term value creation model for management and ownership
Platform Profile
  • Established businesses with at least a 5 year operating history and stable, predictable cash flows
  • Participation in non-cyclical, moderately growing end markets
  • Particular focus on industrial, manufacturing and value-added distribution companies with clear product or capability differentiators
  • Products should serve mission critical applications in highly demanding end markets with few substitutes
  • Long-standing, stable and recurring customer relationships with manageable customer concentration
  • Revenue of $5-$25 Million and trailing three year revenue CAGR of >5%
  • Gross margins of 30%+
  • Owner’s discretionary cash flow of at least $1,000,000
  • Established management team or owner willing to stay on for a reasonable transition period
Proposed Transaction
  • Control investments in operating companies with of in enterprise value up to $10,000,000
  • Combination of senior debt, equity and seller financing
  • Level of go forward owner participation and alignment of interests on strategy key investment criteria
  • Cash and equity incentive programs for senior managers