Investment Philosophy
My partners and I understand that often a business represents a lifetime of work and creativity. We know that a business can become a part of our personality and sense of identity because we are entrepreneurs and founders.
We understand when an owner may want to take in new capital for growth or family liquidity or a management buy-out because we have lived those experiences ourselves.
We understand many have no financial need to work yet they enjoy running their business and want to stay involved without having “all their eggs in one basket” because we too have wanted to balance our holdings.
Our unique approach is to provide the type of investment we were looking for when we ran our own businesses…someone to provide capital needed but that would let us continue to run our business our way. Nothing against most private equity firms but their agenda is just different than most business owners.
We want management to continue to run the businesses we invest in.
We understand when an owner may want to take in new capital for growth or family liquidity or a management buy-out because we have lived those experiences ourselves.
We understand many have no financial need to work yet they enjoy running their business and want to stay involved without having “all their eggs in one basket” because we too have wanted to balance our holdings.
Our unique approach is to provide the type of investment we were looking for when we ran our own businesses…someone to provide capital needed but that would let us continue to run our business our way. Nothing against most private equity firms but their agenda is just different than most business owners.
We want management to continue to run the businesses we invest in.
- Management Autonomy -- We are hands-off believing management should have the freedom and responsibility to run their business. Private equity firms usually will have managers who feel they know how to run your business operations better than you and sooner or later will want to take over the business operation.
- Minority or Majority Investments—Willing invest into minority or majority positions in privately held companies. We do not require control to invest.
- Speed to close -- We make quick decisions. We have a clear understanding of what types of businesses we will consider. If the seller gives us a price that is acceptable, we can close quickly. For example, Funimation from offer to close was completed in 41 days! Due diligence process is simple because of our experience as CEO’s, board members and investors in a variety of businesses. We know what to look for.
- No financing contingency – We have capital available for immediate investment.
- Legacy Investments -- We make legacy investments and have a buy and hold forever strategy unless management believes otherwise. Most private equity firms are mandated to sell companies within a few years of acquisition.