Private Equity Redefined
Our purpose is to generate above average returns for our investors by placing diverse talent in leadership positions within economically durable companies and applying governance for scaling profitably.
We hire diverse A-Talent in Portfolio Companies
Firms With Diverse Leadership Outperform Their Competitors
Gender Diversity Financial Performance bump
Likelihood that top quartile firms for gender diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for gender diversity
The Diversity
Advantage
Racial Diversity Financial Performance bump
Likelihood that top quartile firms for racial diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for Racial diversity
Gender Diversity Financial Performance bump
Likelihood that top quartile firms for gender diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for gender diversity
The Diversity
Advantage
Racial Diversity Financial Performance bump
Likelihood that top quartile firms for racial diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for Racial diversity
We Invest in Stable Assets
We believe that the best way to do good for our society is to create a long-term wealth building platform that is anchored on good businesses. Since we are not “buying to flip” we look for companies that exhibit characteristics that can thrive during the ups and downs of economic cycles.
Non-cyclical
Niche market
dominance or
path to it
Mission critical
products
High Returns on
Assets
Sustainable secular
growth drivers
High barriers
to competitive entry
Recurring customer
relationships
Minimal disruption risk
We Apply Disciplined Governance
A study of 14 global PE firms showed that those with a higher ratio of leaders with an operating focused background performed significantly better than their competitors with a deal focused background. Two of these firms stood out for applying the most effort and investment into operational value creation and had the highest average IRR.1
We leverage our 60+ years of creating value in lower middle to middle market companies along with attention to growth strategy, talent, culture, and forward-looking analytics to ensure that portfolio talent focuses on activities that align with maximum returns.
(1) “Leadership Alpha in Private Equity: An analysis of private equity firms’ interaction with and optimization of portfolio company leadership,” Teneo, November 2022.
RECRUIT
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HOLD
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BUY
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GROW
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BUY
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum
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+150
Years As Hands
on Operators
$500M
Middle Market
Value Creation
Long Term
Capital Control Investments
$10M-150M
Enteroprise
Value
- Strategy Audit
- Cash Flow Audit
- Culture Renovation Audit
- Product/Service Audit
- Talent Audit
- Introduction to Managing for Growth
- Initiate A-Talent Recruiting Strategy, Training & Execution
- Scoreboard Design & Implementation
- Growth Strategy Foundation
- Accountability Mapping
- Reporting Rhythms
- Executive partnership/active management
- Board Meetings
a)Enterprise Outcomes
b) Executive Team Outcomes
c) A-Team Recruiting & Development
d) Growth culture
e) Scaling for Growth
once we' ve closed on a deal and placed the right pre-screened talent in the leadership role(s), we use the 514 plan to position the company for scalable growth
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Governance The 514 Way™
- Initiate A-Talent Recruiting Strategy,
- Training & Execution, .
- Scoreboard Design & Implementation, .
- Growth Strategy Foundation, .
- Accountability Mapping,
- Reporting Rhythms
- Talent Management to Support Investment Thesis,
- Performance Management and Dashboards,
- 1 -5 year Strategic Planning,
- Board and Sponsor Governance,
- Advanced Financial Decision Making,
- Rapid Earnings and Cash Acceleration,
- Profit Dissection and Resource Allocation,
- Inorganic and Organic Growth,
- Effective Innovation,
- Scaling with Technology
- Ongoing Outcomes-Based Management
once we' ve closed on a deal and placed the right pre-screened talent in the leadership role(s), we use the 514 Way™ to position the company for scalable growth
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We vet deals and make
investment decesions by beginning
with the end in mind
Desired
Valuation
Reverse
Engineering
Valuation
External
Insights
investment
Decision
A Partial List Of
Our Affiliations
Long term Horizon
We Invest in economically durable assets that are suitable for holding over a longer time horizon.
Company Attributes
- Private companies looking to solve generational succession gaps
- Businesses sold by multiple PE firms
- Defensive with growth opportunity
- Corporate carveout
- $25M - $150M+ revenue
Long term Horizon
- Sustainable leverage (avg 3x – 4x)
- Cash to redeploy into business
- Regular dividend payments
- Primarily control
Non-cyclical
Niche market
dominance or
path to it
Mission critical
products
High Returns on
Assets
Sustainable secular
growth drivers
High barriers
to competitive entry
Recurring customer
relationships
Minimal disruption risk
Our Goal
Flow
Average
Profitability
To Manage
Business
Firms With Diverse Leadership Outperform Their Competitors
Gender Diversity Financial Performance bump
Likelihood that top quartile firms for gender diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for gender diversity
The Diversity
Advantage
Racial Diversity Financial Performance bump
Likelihood that top quartile firms for racial diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for Racial diversity
Gender Diversity Financial Performance bump
Likelihood that top quartile firms for gender diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for gender diversity
The Diversity
Advantage
Racial Diversity Financial Performance bump
Likelihood that top quartile firms for racial diversity will outperform 5-year median industry EBIT growth vs. firms in bottom quartile for Racial diversity