The Fund’s investment objective is to generate superior, risk-adjusted returns by capitalizing on illiquid market opportunities among small, well-managed and profitable businesses. We look for qualified opportunities in fragmented, inefficient and overlooked markets, with an emphasis on accelerated growth.
We seek to make investments with the following key criteria:
Management Team: Experienced management teams dedicated to achieving continued growth and superior operating results. Management’s interests will be aligned with investors through equity ownership and performance incentives tied to value creation for all shareholders.
Differentiated Products & Services: We target companies with sustainable barriers to competitive entry with the potential to dominate their market niches through: differentiated product features and/or brands, a diversified customer base and product offerings. We look for companies with strong intellectual property portfolios, proprietary know-how, exclusive marketing channels, and limited susceptibility to regulatory, technological, environmental and/or cyclical risks.
Growth Potential & Capital Efficiencies: We focus on companies that serve sizable and rapidly growing markets. We target capital efficient businesses with high return on invested capital profiles, with a particular emphasis on businesses with recurring revenue streams, high customer retention rates and high operating leverage – where moderate increases in company revenues and margin improvements can yield even more rapid increases in operating profit.
| Investment Focus | Strong Management teams, experienced serial entrepreneurs, family-owned businesses, special situations/restructurings, platform businesses and corporate divestitures (non-core assets). |
|---|---|
| Geographic Focus | Primarily Southeast and Mid-Atlantic region, but will consider strong opportunities nationally. |
| Market Focus | Lower to mid-Market – Annual Revenues: < $50M – Annual EBITDA: Negative to $5M |
| Target Equity Investment | $0.5M – $10.0M – Over the life of the investment (with equity partners as required) |
Investment Strategy
Above all we invest in People. We partner with exceptional management teams that are capable of outperforming their industry peers. We invest in opportunities in a broad range of growth industries. And we carefully evaluate and structure investments to meet the needs of each situation measured on a risk-adjusted basis.
Our unique and high-value investor network allows us to stretch beyond our fund capabilities and consistently deliver financing and strategic resources to investment opportunities.
Scenarios for investment vary, but typically fall into one of the following categories:
- Growth capital for family-owned, publicly-traded or strategic owners
- Recapitalizing businesses giving existing investors a liquidity event
- Businesses seeking expansion capital and/or making operational improvements
- Entrepreneurs seeking to make platform acquisitions or consolidation strategies
- Globalization strategy
- Strategic refinement or redirection
- Distressed situations
- Real Estate Debt
While we are generalists, the following industries are of particular interest:
- Financial Services
- Packaging
- Distribution
- Niche Manufacturing / Specialty Industrials
- Technology
- Consumer Products
- Business Services