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
$15-50M
EBITDA
Attractive returns on invested capital
$150-500M
Enterprise Value
Add-on acquisitions of any size