Many middle-market businesses struggle with challenges.
Many middle-market businesses struggle with challenges due to both internal or exogenous events including the loss of a key customer, the departure of a key-management team member, retirement of a founder, a recession, a supply chain dislocation, or even a pandemic. Other businesses can be “orphaned” in larger companies or were purchased by a financial fund that is unable or unwilling to continue to fund the growth strategy. Some have stumbled badly or encountered legal or regulatory obstacles that limit their ability to raise capital from other sources. These special situations often require more than liquidity to bridge them through a short-term dislocation; they often need strategic, operational and organizational guidance and support.
Strong candidates for our capital and support will have a sustainable and defendable advantage in their respective industries. They will include companies that are “turn-arounds,” ones that operate in “out-of-favor” industries or which could be considered “special situations.”
Our investment focus includes companies in, among other businesses, healthcare, hospitality, personal care and other consumer products, manufacturing, customer service, equipment leasing, select retail, musical instruments, gaming and leisure, business and consumer services, field service organizations, equipment and maintenance repair, contract manufacturing, brand management, catalogs, technology support, fintech and financial services.
Target companies will typically have one or more of the following characteristics:
- Revenues from $5 million to $150 million
- Expected EBITDA of between $2 million and $15 million
- A recent issue, obstacle or challenge that is perceived to limit growth or profitability
- An established customer base with some defendable market share