Strategy

 

1. Buy Right. Vast supply of small, private companies (>180,000) available at reasonable prices through negotiated, non-auction sale processes for the universe of small-cap buyout funds (approx. 500 small-cap funds). 

2. Add Value. Small companies offer multiple avenues for rapid value creation, such as support with strategic acquisitions, internal controls development, lean manufacturing, and marketing strategy/initiatives. 

3. Grow. Double-digit revenue and cash flow growth in niche markets growing at 2-4x GDP, with limited use of leverage and financial engineering. 

4. Exit. Numerous exit avenues via auction processes comprised of middle-market private equity funds and strategic acquirers. 

These characteristics have combined to generate the best long-run returns of any private equity sector in the U.S.