Our Investment Criteria
We look for investment opportunities in niche manufacturing, value-added distribution and business or consumer services that require a flexible capital solution to close a transaction and execute a business strategy. We typically invest $10 million to $35 million per transaction, and can lead financings of up to $45 million.
Our key investment criteria include:
- Excellent management teams with a meaningful stake in their business and a plan for continued growth
- Revenues greater than $20 million and EBITDA greater than $5 million
- Stable free cash flow
- Well diversified, repeating customer base
- Defensible market positions
We don't consider:
- Early stage or technology-driven businesses
- Real estate, commodity-based or capital-intensive companies
- High customer or vendor concentration
- Declining businesses or industries
Investment Structure:
- Second lien debt
- Subordinated debt or subordinated debt with warrants
- Preferred stock with a dividend can be considered
- Will purchase equity in conjunction with mezzanine investment
