Strategy
Long-term investments in lower middle market companies in North America
Size Parameters
Company Size
We focus on companies with EBITDA between $3MM and $10MM. We will co-invest in larger companies where our Roundtable can be additive. We will also consider investments in smaller companies within our immediate region.​
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Investment Amount
We look to invest between $5MM and $30MM per company. Larger amounts are possible through co-investment with our Roundtable partners or other firms.
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Start-Ups
We do not invest in companies before they have achieved meaningful customer adoption. We are pleased to hear from entrepreneurs pursuing excellent new ideas with a view to investing when the business approaches our size parameters.
Quality
We look for the following general characteristics
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Competitive advantages that are sustainable over the long-term.
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Scalability.
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Excellent management teams.
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Superior returns on internally-invested capital.​
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While not a requirement, we prefer investments
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With the potential to last a long time – i.e. over 10 years.
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Made in partnership with management teams or existing owners.
Industry
Illustrative industry groups of interest:​​
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Differentiated manufacturers (e.g. niche markets, unique products or processes)
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Recurring-revenue service businesses
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Professional services
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Value-added distribution businesses
Illustrative sectors where we are unlikely to be a good fit:
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Commodity processors
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Job shops
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Trucking
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Real estate
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Gaming
Geographic Focus
We consider investments whose primary operations are located anywhere in North America. Given our central location, we are particularly active between the Appalachian and Rocky Mountains.
Structures
Acquisitions
We acquire controlling interests in companies, often in partnership with existing or new management teams. We work with sellers and their advisors to structure transactions optimally for mutual advantage. We participate in auctions and negotiated processes alike.
Minority Investments
We also make minority investments, whether in recapitalizations to provide liquidity to existing owners or in the form of new growth capital.
Co-Investments
We will join as co-investors behind others who share our basic values. Similarly we welcome co-investors who add value to transactions led by us.
Mezzanine Capital
We have the ability to provide deep mezzanine capital where doing so meets the needs of the parties better than equity. By “deep” we mean subordinated debt or preferred equity that contains few if any restrictive covenants, accompanied by an appropriate level of participation in the company’s upside.
