Investment Criteria

Experts in Building Leading U.S. Middle Market Distribution and Business Services Companies

Industry Focus

We are a “go-to” middle market private equity firm in distribution and business services –concentrating on recession resistant segments characterized by secular growth tailwinds, significant fragmentation, and recurring demand dynamics
Distribution
  • After-Market and MRO Parts
  • Consumable Products
Business Services
  • Building and Facilities Services
  • Essential and Outsourced Services
distribution business-services

Targeted Business Characteristics

Market Leaders with Sustainable Competitive Advantages
Market Leaders with Sustainable Competitive Advantages
  • Delivery of differentiated products or services
  • Industry leadership in utilization of technology and the internet
  • Scale
  • Significant barriers to entry
  • Ability to compete on a basis other than price
Emotionally and Financially Committed Management
Emotionally and Financially Committed Management
  • Vision and desire to move their companies to the next level
Demonstrated Growth and Industry “Tailwinds”
Demonstrated Growth and Industry “Tailwinds”
  • Organic growth through industry growth “tailwind”, market share gains or product line and geographic expansion
  • Add-on acquisitions
  • Actionable opportunities for operating improvements
  • Scalable business model
Recurring Customer Demand Dynamics and Downside Protection
Recurring Customer Demand Dynamics and Downside Protection
  • Essential products or services
  • Diversified customer and supplier base Strong
  • Profitability and Cash Flow

Typical Financial Characteristics

$50-500M
Revenue
Demonstrated strong free cash flow generation
$10-50M
EBITDA
Attractive returns on invested capital
$150-400M
Enterprise Value
Add-on acquisitions of any size