The following characteristics have often been the reason companies have chosen to partner with us:
Growth capital, in addition to buyouts: While we are comfortable making, and have completed many, recapitalization and buyout transactions, we believe the greatest value can be created by providing capital to fund a company’s internal, and acquisition, growth opportunities. Often transactions contain elements of both growth capital as well as shareholder liquidity and / or debt repayment.
Willingness to make minority investments: We are comfortable making minority, as well as majority, investments. As a result of our partnership perspective, it is not majority economic ownership that determines ultimate success. In fact, we believe that meaningful ownership by management works well to align incentives.
Conservative and flexible capital structures: Our investments typically include only modest leverage. We believe in creating value through growth in earnings and do not want highly-levered balance sheets to constrain such growth. Additionally, proper capitalizations enable companies to withstand difficult and volatile economic environments.
Support existing management teams: We seek to back management teams that are capable of taking their company to the “next level.” We do not employ operating partners but rather work with existing management to identify and recruit additional talent and resources as needed. Additionally, we partner with proven executives interested in acquiring platform businesses.
Often first institutional capital: Our investment is often the first institutional capital in a company. Companies typically have lending relationships but not third party equity. In addition to our capital, we help companies realize the economic and strategic benefits of implementing best practices, in order to maximize shareholder value.