Investment Criteria

Operator Philosophy

(   01   )
Character matters

We are signing up to be minority partners for the long haul. Mutual trust and integrity are paramount.

(   02   )
Grit > academic pedigree

We are industry-agnostic but do not invest in consumer and retail, and generally avoid businesses tied to new construction.

(   03   )
Know your weaknesses

We want to work with operators who recognize their blind spots and complement themselves

(   04  )
Your business, not ours

Operators should know their business inside out. Screen for deep understanding of business model and existential risks.

(   05  )
Understand the “why”

We do not want to invest in people who are “buying a job.” Understanding motivations will save us a

(   06  )
Skin in the game

We place high value on transactions that come with a personal guarantee and/or meaningful operator equity contribution. We want to back people that back themselves

Business & Deal Profile

(   01   )
Operator (Searcher) Profile

We care about your work ethic, learning ability, and managerial skills far more than your college degree or financial sophistication (that’s what we’re here for!).

(   02   )
Industry Profile

We are industry-agnostic but do not invest in consumer and retail, and generally avoid businesses tied to new construction.

(   03   )
Business & Financial Profile:
  • Mature, resilient businesses with stable cash flows
  • Modest growth
  • Components of recurring or re-occurring revenue
  • Established customer base with limited customer concentration
  • $500K-$5M of cash flow or SDE
  • Low capital expenditure requirements
  • Attractive net working capital dynamics
(   04  )
Deal & Seller Profile:
  • Leveraged buyouts or recapitalizations
  • Less than 6.0x cash flow acquisition multiple
  • Founder or owner-operator led businesses
  • Preferably retirement sales
  • Seller provides seller financing and / or earnout and commits to a period of transition
  • Seller cares about the business preserving independent ownership and giving back to the community