Investment Criteria
Our strategy is to invest in lower middle market companies that can become significantly more valuable during our ownership. We are interested in reviewing prospective transactions within the following general parameters.
Company/Industry
- Established companies with up to $50 million of revenue, with a particular emphasis on businesses that are generating $1-3 million of EBITDA
- Operations located primarily east of the Mississippi River
- Wide variety of industries considered, but typically do not pursue investments in retail, technology, commodities or real estate.
Transaction Structure/Size
- Acquisitions and change-of-control recapitalizations
- Significant equity stakes for senior management
- Up to $7 million of equity from our fund
- For larger transactions, we arrange additional equity from our network of co-investors
Ownership and Management Dynamics
- Family-owned businesses
- Owner-operated businesses
- Businesses whose owners are not active in management
- Corporate divestitures
- Equally comfortable partnering with sellers who wish to remain active in the business, partnering with other existing management and recruiting new management
