
HOW WE SELECT INVESTMENTS
INDUSTRY INVESTMENT CRITERIA
REQUIRED
Highly fragmented $500mm+ industry in the services sector
Industry supported by secular tailwinds
Limited risk of technological or regulatory disruption
PREFERRED, BUT NOT REQUIRED
$1bn+ industry
3%+ industry growth
Few existing strategics / consolidators
BUSINESS INVESTMENT CRITERIA
REQUIRED
Up to $8mm of EBITDA and $50mm of revenue
5+ years of operating history
#1 or #2 market-share holder in a niche market
Strong value proposition and reputation
High customer retention
Fragmented and healthy customer and vendor bases
Capable management with a stake in the business
No key man risk
15%+ EBITDA margins
3%+ organic growth
PREFERRED, BUT NOT REQUIRED
10+ years of operating history
Significant recurring revenue
Limited cyclicality
The cost of services are relatively insignificant to customers
History of capturing market share
20%+ EBITDA margins
5%+ organic growth
THE PRESENCE OF AT LEAST ONE DURABLE BARRIER-TO-ENTRY
REQUIRED
Supply-side economies of scale
Demand-side economies of scale
Regulatory barriers
High customer switching costs
Preexisting relationships with fully saturated distribution channels
Unique reputational or know-how advantage