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The Asset Class: Small Business Equity

  • Enduringly profitable small companies with $300K to $2.5M EBITDA and target equity IRRs >30%
  • Service and manufacturing businesses with strong customer bases, little cyclicality, and low customer concentration
  • Over 1 million businesses in the US fit this profile, many of which are owned by baby boomers nearing retirement

Why SMB Equity?

  • Appealing 3-6x entry multiples with reasonable access to 2-3x debt leverage
  • Motivated and capable management focused on reinvigorating topline/margin growth and taking advantage of multiple expansion upside
  • Target businesses are uniquely positioned to benefit from new motivated owners/operators capable of efficiently transitioning and growing the company

How we Capture the Opportunity

  • Maintain a superior deal pipeline by engaging, building relationships with, and qualifying entrepreneurs early on in their search process
  • Tap into an experienced, value-add investor base to provide top-quality board composition
  • Utilize our proprietary pipeline of over 5,000 entrepreneurs to support various deal and economic structures, including traditional search funds, self-funded search entrepreneurs, and independent sponsors