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

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Our Risk/Return Ratio

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