Investment Criteria

We focus on companies in the lower middle market in the United States and Canada that meet the following criteria:

Financial

• Revenue between $5 million - $100 million
• EBITDA of $1 million - $10 million

Company Characteristics

• Market niche leaders
• Defensible market position with barriers to entry
• Non-cyclical revenues
• Consistent profit margin greater than 10%
• Growth potential internally or through consolidation

Industry Focus

• Services (business to business, business to consumer )
• Niche Manufacturers (proprietary/engineered products)
• Branded Consumer Products
• Fitness, Wellness & Healthcare
• Technology
• Value-added Distribution
• Specialty Retail/Catalog/Internet

Management

• Management continuity is preferred, but not required
• Opportunity for broader equity participation for key employees

Transaction Types

• Buyout of retiring owner(s)
• Management buyout
• Generational transfer in a family business
• Recapitalization of existing ownership/management
• Corporate divestitures
• Growth capital

Management and the specific company characteristics are viewed as far more significant to the investment decision than the industry.