Our strategy is to build a small portfolio of select lower middle market companies in partnership with legacy owners and builders. We believe that great value can be created by combining the core strengths and foundation of strong privately held businesses with professional management disciplines, prudent capital structures, and engaged strategic and operational direction.
Our structure as a partnership of individual investors rather than a fund of institutional capital provides distinct advantages for us and our management partners. Our investments are horizon-free, allowing us to make strategic decisions in the best interest of our partners unburdened from institutional demands. We are also able to look at each business as an individual partner rather than as part of a fund, affording us a “leave no man behind” philosophy and a deep commitment to each business we work with.
We take a highly active engagement with each of our partner companies. We recognize that the management teams that have built these businesses understand the intricacies of their model better than we ever will, and provide them with a runway to operate as they see fit. As partners with management, we provide the resources needed to scale the business: strategic direction stemming from careers of successfully growing similar businesses, deep operational expertise from former CEOs and industry leaders who can mentor management in how to take the next step, and prudent capital to help the business exploit organic and acquisitive opportunities.
We look for smaller businesses in familiar or approachable industries, with strong growth trajectories and the management teams to sustain them. In addition to exceptional management, we look for favorable underlying market dynamics, attractive competitive landscapes and multiple expansion channels as indicators that a company has the ability to continue growing during our investment. We partner with proven cash flow generators whose business models are differentiated, diversified and scalable.