Investment Criteria
Sectors of interest:
• Primarily focused on the consumer, food, agriculture and industrial sectors
• Special interest in companies that improve supply chains, invest in social and/or SEO for customer acquisition and engagement, and/or address consumer preferences for food safety, clean label, healthy living, and sustainability
Company characteristics:
• $5-100 MM revenue and $0-10 MM EBITDA ($1-5 MM sweet spot)
• Growing industry, and/or disruptor within a mature or fragmented industry
• Market leader in its category, with clear differentiation
• Strong gross margins (at least 30%, ideally much higher)
• Not subject to fad or tech risk
• Preference for Midwest and Western U.S., but will selectively pursue companies in other geographies
Transaction characteristics:
• Growth equity or buyout, majority or minority (preferred equity with governance rights)
• Potential investment scenarios include: family succession transaction, buyout of an inactive partner, fund a new facility or working capital, recapitalization to pay down debt, complete an add-on acquisition, carve-out a division from a larger company, or other such similar uses
• Preference for healthy and growing companies, but willing to consider special situations where our capital and involvement can improve balance sheet or enable future growth