Investment Profile: We focus on lower middle-market companies in the $5-20 million revenue / $1-5 million EBITDA range, which require growth capital. These are companies typical valued at $5-30 million (5x-6x EBITDA) that are planning to raise $2-15 million. Our network of traditional private equity funds, family offices, and high net worth individuals actively seek opportunities with the following investment parameters.
Industries:
• Business services
• Consumer services
• Financial services
• Healthcare
• Manufacturing
• Value-add distribution
• Energy
• Communications
• IT services and software
Use of Funds:
• Acquisitions
• Growth
• Leveraged buyouts
• Management buyouts
• Recapitalizations Investment Size:
• $2M – $15M in equity
• We will co-invest for larger dollar amounts up to $50M
Company Characteristics:
• Minimum annual revenue of $5M
• Minimum cash flow of $1M
• Experienced and committed management team
• Strong market dynamics
• Sustainable cash flow
• Proven business strategy
Will Not Pursue:
• Negative cash flow companies
• Project-based financings (oil & gas exploration, motion picture production, etc.)
• Biotechnology, pharmaceuticals
• Gaming, sports
Geography:
• North America
While our main focus is on later-stage businesses with positive cash flow, we consider early stage companies from time to time. Our objective is to invest in companies that have strong management teams with personal equity at risk, positive and recurring cash flow, a large market opportunity, and a need for capital to execute their business plans.