Investment Profile

Established businesses with a history of profitability and sustainable cash flow. Will not invest in early-stage businesses or in turnarounds

EBITDA of at least $2.0 million

Must have a strong team with solid track record in place or already identified as part of an acquisition. Meaningful ownership stakes and appropriate incentives are critical

• Growth Capital
• Strategic Acquisitions
• Ownership Transitions
• Recapitalizations

Targeted industries include chemicals, consumer products, business services, distribution, and niche manufacturing. We do not invest in real estate, mineral exploration, financial institutions or businesses involving a significant bet on the evolution of specific technologies or with high risk of technological obsolescence

Located in the United States

Will invest in unsponsored transactions. Will co-invest with other funds

Generally do not seek a controlling interest

Generally a second security interest in collateral as part of a subordinated debt financing, subject to a subordination agreement with the senior lender

2-3% closing fee, plus out of pocket expenses

Generally receive granted equity or detachable warrants with a put option

Typically 10-14% p.a. in interest or dividends

Debt repayment generally within 5 years but will hold equity for longer periods

$3-15 million per company

Preference for subordinated debt with granted equity, but will consider redeemable preferred equity where appropriate

Board seat or observation rights to board meetings. Do not typically control or actively manage businesses in which we invest, but serve as strategic advisers and financial partners