We view System Companies as attractive because they tend to be lower-risk investment candidates because of their contractual rights, steady growth rates, strong cash flows, and symbiotic relationships with their blue-chip counterparts.
We target North American-based System Companies that have the following characteristics:
Revenues between $50 million and $2 billion
Symbiotic relationships with blue-chip entities, such as large corporations and government agencies, as a result of being the sole or key providers of value-added products and/or services
Leading market position and sustainable competitive advantages
Attractive growth prospects and strong, recession resistant cash flows
Experienced management team that has an ownership mentality
Clear opportunities for long-term, sustainable value creation
We specialize in:
1) acquiring and converting corporate divisions and government-owned organizations into independent, privately-held System Companies; and 2) investing in independent, privately-owned System Companies and growing them into larger and more meaningful suppliers and/or distributors of blue chip entities.