Investment Strategy
We seek growth-oriented investment opportunities within industry sectors where we have management and investing experience, including education, information services, marketing services, branded consumer products, and specialty retail. Our investment philosophy is based on the belief that our industry specializations and unique operating backgrounds enhance our ability to partner with successful management teams to realize top-level returns for our investors. As such, we invest in traditional MBOs, sales of private companies, industry consolidations, growth equity or acquisition equity capital raises, corporate carve-outs and operationally challenged opportunities. We specifically target:
Value-Add Opportunities
We pride ourselves on our ability to recognize value where others do not. Our collective hands-on operating and private equity experience enables us to create untapped value through our unique management expertise and commitment to growth strategies. We have successfully trained sales teams, launched brands, managed during challenging times and built systems infrastructures. We conservatively optimize capital structures to balance not only the needs for financial returns, but also operational flexibility. As a result, we seek opportunities where we can leverage our experience to actively bring performance enhancements and hidden growth potential to companies.
Middle to Lower Middle Market Companies
We typically target middle to lower middle market companies with enterprise values up to $250 million. The ideal company has the potential for significant value creation through growth, operational improvement, or strategic acquisition.
$15MM - $75MM Investment Size
Our target investment size is between $15MM and $75MM; although we have the flexibility to call upon additional resources to pursue larger opportunities. We generally prefer a controlling interest; however, under the right circumstances, we have successfully partnered with other private equity investors and will consider traditional minority investments.
Established Businesses
Companies we target must be proven revenue generators with competitive positions, barriers to entry, and strong management teams. It is critical that management’s economic incentives are aligned with ours. We insist on proven, profitable, business models, but will consider strong growth companies as well as troubled situations where we can identify a clear path to positive cash flow.