Investment Criteria

Financial Criteria

  • Revenue > $5.0 million
  • EBITDA $1.5 to $4.0 million
  • EBITDA Margin > 10%
  • Top customer < 20% of revenue

Industry

  • Generalists, but focus on business services, distribution, education, healthcare services, and industrials
  • Strong industry fundamentals with minimal disruption risk
  • Strong secular trends for product or service offering

Geography

  • Primary operations headquartered East of the Rocky Mountains
  • Preferences for businesses within a 5 hour drive or 1 hour flight of Pittsburgh, Pennsylvania or Denver, Colorado

Characteristics

  • Seek to be the first institutional capital
  • Predictable and defensive cash flows
  • Some level of recurring revenue
  • Easy to understand business models
  • Diversified customer base and product offering
  • Asset light businesses with low maintenance CAPEX requirements

Situations

  • Exit / Succession Planning

We understand most business owners inevitably wish to transition out of their company to pursue other interests. We are flexible in helping an ownership group achieve their goals and objectives and ensure the company maintains its culture and business continuity under a new owner.

  • Management Buyouts

We partner with management teams that need capital to buyout ownership groups of privately held businesses.

  • Corporate Divestiture

We invest when larger public or private parent corporations sell off non-core business units that have proven operators.

  • Recapitalization

We invest when business owners desire to sell a majority ownership of their company but wish to retain a meaningful ownership interest and continue leading the organization.