Middle-Market Growth Businesses
We invest in middle-market growth companies with attractive free cash flow characteristics, with revenues typically driven more by secular growth trends than overall GDP growth. We also seek platform acquisitions in fragmented industries with opportunities for consolidation, and undermanaged companies where we have identified a path to re-accelerate growth through operating improvements and/or strategic repositioning. Although we consider a broad range of transactions, we typically target companies with enterprise values between $250 million and $2.5 billion.
Industry Focus & Expertise
We focus on four industry sectors: Consumer, Financial Services, Healthcare and Technology & Business Solutions. Companies in these sectors tend to exhibit attractive growth and free cash flow characteristics. We believe our deep industry expertise and relationships make us more knowledgeable, value-added partners. Over our 45+ year history, approximately 88% of the capital invested has been deployed in these four sectors.
We leverage our deep domain expertise, long-standing relationships and strong operating capabilities to create sourcing advantages. Starting with broad investment themes and secular trends, we develop identified sector opportunities (“ISOs”) which combine industry insight and relationships to build conviction around specific investment ideas.
Our teams of investment and operating professionals work with portfolio company management teams to identify and implement organizational, operational and strategic improvements. We bring expertise in critical areas such as human capital management and organizational design, go-to-market strategy and execution, technology and innovation, operations and productivity, M&A integration and cross-portfolio services.
We invest primarily in companies headquartered in North America, where we can leverage our extensive local market knowledge and networks. North America is a large, growing market with attractive access to liquidity, deep pools of human talent, and demonstrated leadership in innovation. We believe we are well-positioned to capitalize on global growth through international expansion opportunities for our North American headquartered companies.