Investment Criteria

Macro sector thesis driven

We seek investment opportunities in targeted manufacturing, distribution, and business services sectors that are expected to grow faster than the general economy over an extended time as a result of industry and macroeconomic fundamentals. Our decades of collective investment experience through economic and financial cycles have taught us that the attractiveness of investments in particular industries will vary widely over time. Our views with respect to specific industry sectors evolve based on our assessment of macro fundamentals and the involvement of talented Operating Partners who offer deep insight into sector-specific dynamics.

Characteristics we look for in opportunities

The businesses we pursue tend to share a number of characteristics:

A large market opportunity, with industry fundamentals that support long-term growth
An established business model
Sustained customer demand driven by the essential nature of the company’s products or services
Prior ownership that has been unable or unwilling to support the business’s opportunities for growth
Past operational challenges and financial under-performance relative to industry peers
Identifiable business risks that can be understood and quantified
Controllable factors for the business’s success that outweigh uncontrollable factors

Flexible investment size and geography

We have a broad investment mandate and capabilities. We target control equity investments ranging from $50 million to $150 million in North American middle market companies. The businesses in which we invest typically have EBITDA ranging from negative to $50 million and revenues of between $50 million and $300 million. When necessary, we can team up with our limited partner investors to apply our investment strategy successfully to larger companies. For companies we already own, we actively support smaller add-on acquisition opportunities.

Current sectors of interest

We have experience and capabilities across a range of industries, and relationships with Operating Partners in those sectors who can add significant value. Currently, we are focused on the following industry sectors:

Manufacturing and value-added distribution, particularly:

Military and commercial aerospace products
Building products
Medical products
Other highly engineered industrial products