- $3-$10 million target investment size
- Subordinated debt and equity capital
- Term of four to six years
- 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; and
- 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 Northeast and Middle Atlantic regions. 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.