Fixed current pay coupon (and PIK interest when appropriate)
Generally interest only until maturity, though reviewed on a case by case basis
Board observation or board rights
Co-invest with other capital providers
Revenue $10-$75 million
EBITDA $2-$8 million
Recurring or highly repeatable revenue
Sustainable competitive position
Branded or highly engineered product
Diversified customer base
Participate in growing markets or have opportunity to increase market share in more mature markets
Experienced and committed management team with a significant equity stake
We seek to apply our capital, experience and assistance in situations where most or all of the following apply:
Our capital will allow the portfolio company to achieve an important corporate objective which materially adds value or removes an impediment to creating value.
We have an opportunity to build a meaningful relationship with management and where the management team truly is looking for a partner to build value.
We receive the appropriate level of return for the risk and effort we are undertaking.
We have full access to information and management in order to conduct thorough due diligence.
An identifiable exit strategy for our investment.
Industries & Geographic Preference
We have experience in and have invested in a wide range of industries and business models. We generally invest in manufacturing, business services, consumer products, healthcare, and media companies. We do not invest in the real estate, biotech, and oil & gas industries.
We invest in U.S.-based businesses and preference is given to companies headquartered in the eastern half of the U.S. We will consider transactions outside of these regions for (i) transactions sponsored by equity groups with which we have a prior relationship, and (ii) unsponsored transactions where we know the management team or are introduced to the opportunity through a direct relationship.