We partner with top caliber executives to acquire middle market businesses where we can establish a path to value creation.
To execute our strategy, we bring together the following three key elements in each transaction:
Top Caliber Executive
We recruit exceptional executives who will be our partners in selecting and acquiring a company where they can develop and lead a tactical value creation plan. The executives with whom we partner have successfully led businesses much larger than the businesses we are acquiring; typically our executive partners have run a P&L of $1 billion or greater.
Solid Middle Market Company
We acquire well-positioned businesses with value creation opportunities that are a good match with our executive’s skill set and industry expertise. We typically invest $30 million to $150 million of equity into businesses with an enterprise value of $100 million to $500 million. We are typically the control investor in each of our portfolio companies.
Path to Value Creation
We identify growth and operational improvement opportunities that can be implemented by our experienced executive partner. Specific value creation initiatives are tailored to each opportunity, but most often fall under the following categories: improving operating performance (growing revenues, improving manufacturing efficiency, etc), improving working capital and asset utilization, enhancing the business with add-on acquisitions, developing the management team, and creating a value-added board of directors.