The relationships and experiences of our team, and our proprietary value creation analytical tools, provide a valuable base of knowledge and focus to successfully identify, plan, fund, and execute our investment strategies across our portfolio partner companies.  We are also able to structure deal terms that prioritizes return of principle and overall return on investment, while managing risks for both our investors and portfolio partners.

Our approach to doing this is complete, active and disciplined from setting to exceeding key goals that are focused on both operational and financial outcomes.

selection process

We are knowledgeable about the types of portfolio companies we support and how to evaluate growth and return potential. We target investments in top quartile markets with a focus on higher than average asset turns, and favorable financial structure potential.  In addition we look for company owners desiring to grow, and who are open to guidance, planning, and financial support from experienced industry experts. Our experience enables us to complete robust due diligence and assess pivotal business drivers to best position us for exceptional returns.

Pre-acquisition, we develop a plan for driving the results we desire. The scope of our focus ranges from identifying the best markets, scoping out the best product features, and the best deal structure to create win/win returns for our investors and our portfolio companies. 

OPERATIng protocol

We are active investors who actively help our portfolio company leaders with strategy development, operations planning, execution, and capital management.  We strike a fine balance in our approach with management by advising and guiding without micromanaging.  In addition, we leverage our industry know how and relationship to provide market leading practices to help our portfolio companies improve operating performance.

The engine of our return performance is our underwriting and deal structure discipline.  We follow a tightly controlled and managed process to examine all elements of a potential investment, including, its location, income-producing capacity, the timing of development, speed, sales flow rate, and history and reputation of the portfolio company. Only those opportunities meeting the investment criteria will be accepted for inclusion into the portfolio.

Investment exit

We focus on portfolio opportunities with investment and return life-cycles of about two to five years.  This approach enables a faster return of principle to our investors while reaping the benefits of dividend type cash-flows after our return of principle.  As a result, the deals have natural start and end dates while enabling quick return of principle and great overall return potential.

We set return goals early in our buying phase, and assess them continuously against market events, target returns, and evolving portfolio dynamics. We scan our markets continuously to get benchmarks for mark-to-market valuations, and watch for favorable opportunities to further enhance our returns.

managing risk

We are responsible investors. Understanding the full impact of market factors is integral to the rigorous review and consideration process that each investment opportunity undergoes. Our comprehensive process is integral to understanding more about the inner nature of our companies and enables us to avoid or minimize the most critical operational, financial, and compliance risks. We review potential stress scenarios early on, from environmental impact, corporate culture, governance, ethics, and regulatory compliance, to the company’s products, customers, supply chains, cycles, capital structures and competitive pressures. We also develop metrics to identify risk and strategies to minimize risk as part of our pre-acquisition plan.

We also use deal structure as a key component of risk management.  We typically choose to prioritize the return of principle and timing of dividend type cash flows over absolute share of profits.  We find that this approach provides a higher likelihood of favorable targeted risk-adjusted return over other types of deal and profit share structures, and provides more peace of mind for our investors.

Our risk analysis, management and monitoring begin in the sourcing phase, and continue at all levels throughout our involvement. We also require added layers of ongoing strategic and financial reporting from our portfolio companies, supported by a designated manager who works with each CEO and CFO.  We believe in rigorous compliance and transparency: always doing the right thing. The approach above and our relentless rigor positions us to generate favorable returns with lower risk.