Industry Preference

We successfully target to assist enterprises that are in transition. The enterprise transition can be wide reaching. Some common “transition" areas we have been able to assist companies are one relating to growth pains with liquidity issues, transition due to the retirement of an owner or partner, a transition caused by an unexpected financial crisis, or a transition whereby existing owners/managers realize they have significant shortcomings and are not equipped in their current capacity or staffing to overcome these issues (IE back-end financial assistance, sales capabilities, Supply Chain efficiencies, overseas component sourcing, etc).

We require the companies we invest in to have adequate and transparent financial and operating data to support an investment thesis. We would prefer to see some history of profitable results but will from time to time invest in a company with some losses if the reasons for those losses are identifiable. The company must also have real long term prospects and the management team in place to capitalize on those prospects.

We typically avoid any situations where deals are shopped by multiple parties. Nearly all of our transaction flow comes from private introductions from our wide network of professional relationships, including commercial, real-estate, and investment bankers, factors, attorneys, accountants, tax professionals, consultants and brokers, retailers and work-out specialists.

In most of our deals where management is staying on, we have a strong preference to see management participate in the deal. We typically make equity investments but under the right circumstances we will make mezzanine investments.