Approach
Top-down, thesis-driven investors/PE, meaning to analyze broad macroeconomic trends to identify attractive industries. The in-depth market research and exacting analysis drives the investment strategy & decision-making. Proactive, non-linear thinker.
Industry Sectors
- Fragmented markets; industries with no clear leader or category disruption.
- Among the industries identified as attractive are:
- Automotive tier 1 or 2 Suppliers
- Industrial and Differentiated Manufacturers
- Consumer Products (B2B)
- Value-add Distribution
- Engineered Products & Materials
- Services (financial, etc)
- Seek to work with industry leaders in markets that have greater than $100 million-plus potential.
- The focus is on middle-market & lower middle-market companies meeting these parameters
Financial Characteristics
- Enterprise values from $10 million to $200+ million
- Revenues between $25 million and $200+ million
- EBITDA to $20+ million
- A path to EBITDA margins greater than 10%
- Equity investment of $2 – $40 million
Business Characteristics
- Defensible market position (i.e., unique business model, IP, technology, etc.)
- Critical products (got-to-have vs want-to-have)
- Minimally cyclical
- Favorable growth prospects and stable competitive dynamics
- Positive historical cash flows with room for improvement
- Business-to-business and product-centric
- Diversified customer base
- US-based