Process
Investment Process
Market
Our Focus
Invest in the lower middle market (<$200M of revenue)
Why?
- Underserved market
- Less Competition
- Attractive Valuations
Industry
Our Focus
Focus on niche service businesses (Target Industries: Financial Services, Infrastructure Services, and Transportation/Logistics)
Why?
- Minimal capital expenditure requirements
- Strong free-cash flows to support capital structure
- Highly scalable platforms
Sourcing
Our Focus
Source our deals directly from entrepreneurs through our peer networks or through local brokers
Why?
- Attractive purchase price multiples
- Proven and committed management
- Provides competitive edge in limited auctions
Structuring
Our Focus
Partner with entrepreneurs and require their participation in the capital structure
Why?
- Minimizes financial risk by over-equitizing the business
- Reduces the need for higher cost debt
- Provides greater alignment of interests
Value-Add Initiatives
Our Focus
Drive profitable growth through accretive add-on acquisitions by leveraging our C-level relationships with customers
Why?
- Increases likelihood of being able to exit quickly
- Drives growth, diversification, and profitability
- Maximizes likelihood of higher multiple on exit
Investment Objectives
Our unique investment approach, Asymmetric Risk Investment Strategy, alters the traditional risk/return ratio by minimizing capital risk and maximizing the potential for outsized risk-adjusted returns.
Traditional Risk/Return Ratio
Our Risk/Return Ratio