Transaction types and form of investment:
• Senior subordinated debt and structured equity capital invested in growing companies with demonstrated track records of profitability.
• Financings support generational transfers, growth capital financings, recapitalizations, sponsored and unsponsored buyouts, leveraged acquisitions, and follow-on acquisitions.
Portfolio company characteristics:
• First-class management teams with meaningful stakes in the business.
• Market leadership position in defined niches, with sustainable competitive advantages.
• Asset-light businesses with limited capital expenditures needs and recurring revenues from counter-cyclical business models.
• Stable cash flows with above-average Return on Net Assets ("RONA")
• Profitable companies with establish revenues of at least $10 million.
• Favored industries include niche and light manufacturing/assembly, business services (including industrial, healthcare, government contracting, energy, and technology), value-added distribution, and media.
Investment size and parameters:
• $2 - $8 million total investment, with ability to accommodate larger transactions though our network of strategic partners.
• Commitments include potential for follow-on investments.
• 3 – 7 year investment horizon.