Investment Criteria

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Investment Criteria

The Fund generally seeks to invest in middle-market manufacturing, distribution, and business services companies in partnership with proven management. While we will be opportunistic, target companies will generally be consistent with the following:

 

Size

Stage

Revenues between $15 million and $50 million, and EBITDA in excess of $2 million

Established companies with a history of profitability

Geography

Investment Size

No restriction, but we focus on the greater Midwestern region of the United States

Between $3 million and $10 million from the Fund (considerably larger with partner co-investment)

Control

Sectors

Majority control or minority investment structures

All “traditional economy” sectors, with a distinct focus on general manufacturing and business services companies, with addressable markets of at least $300mm. Not considered: financial institutions, real estate, retail, start-ups

 


 

Investment Strategies

We pursue acquisitions with a variety of investment styles. We look to aggressively work with existing owners, corporate executives, investment bankers, lawyers, accountants, and a variety of other referral sources. Our investments will most likely be in conjunction with the following situations:

 

Growth Equity Investments

Studied Industry Acquisitions

The Fund provides equity financing to enable companies to capitalize on new product opportunities, favorable competitive situations, and opportunities for geographic expansion through acquisition or otherwise

TGP Capital Partners may target certain industries for growth equity investments or management buyout transactions.  These will be in segments that the firm and its management partners deem attractive, and which can be exploited by our collective experience and knowledge in that particular niche

Management Buyout
Opportunities

Industry Consolidation
and Build-Up Strategies

These transactions are characterized by partnering with an experienced management team to acquire a business or business unit, and to provide additional resources to help management increase revenue and profitability.  These opportunities typically originate from corporate sellers, generational changes of ownership, or the liquidity desires of a company’s existing shareholder base

Working in tandem with experienced and respected management partners, we support existing businesses by helping facilitate growth through acquisitions of complementary businesses within their industry.  These strategies are intended to lead to significant economies of scale and increased market share, cash flow, and earnings, while also providing viable exit strategies