What We Do

Our investment approach is centered on identifying and profiting from market inefficiencies inherent in small-cap and/or complex situations. We are focused on structural capital preservation, while maintaining substantial upside equity optionality. We partner with fundamentally-driven specialists that possess deep sector knowledge and/or unique operational expertise and have experience working with small companies.

Representative Transaction Characteristics

  • Founder-owned business in transition
  • Recapitalizations
  • Underperforming business due to insufficient management and/or resources
  • Operational turnarounds
  • Carve-outs of non-core divisions or subsidiaries
  • Bankruptcies
    • § 363 asset sales
    • Plans of reorganization
  • Out of court restructurings
  • Thematic platform builds

Business Characteristics

  • EBITDA – $3 to $15+ million
    • Negative EBITDA okay in turnaround situations
  • Fragmented industries or markets
  • Defensible market position in product, channel or geographic niche
  • Opportunities for improving operational efficiencies
  • Headquartered in the United States or Canada

Investment Characteristics

  • $6 to $15 million equity investment
  • Majority stakes or minority member of syndicate
  • Able to reserve for follow-on capital for both organic and acquisitive growth