How We Invest

We bring a flexible, capital structure-agnostic approach to investing: we are equally comfortable as a majority or minority partner, and investing in equity or debt securities.

TYPICAL INVESTMENT METRICS


  • Investment size: $8-30 million for credit transactions, $15-75 million for equity (up to $150 million with Bregal co-invest)
  • Structures: Common or preferred equity; senior or subordinated debt
  • Role: Control or non-control; typically lead investor

TYPICAL COMPANY METRICS


  • Revenue size: $15-250 million
  • Company growth: >10%, achievable organically or inorganically
  • Revenue model: Recurring or re-occurring (subscription, transactional, etc.)
  • Profitability: Corporate or unit-level profitability

Industry and Company Focus

We focus on industries with strong secular tailwinds and companies with recurring or re-occurring revenue streams.

SOFTWARE

  • SaaS
  • Enterprise software
  • Internet

DIGITAL INFRASTRUCTURE

  • Tower infrastructure
  • Data center infrastructure
  • Hosting and cloud services

HEALTHCARE IT / SERVICES

  • Healthcare services
  • Healthcare IT
  • Outpatient / outsourcing

BUSINESS AND CONSUMER SERVICES

  • Business (“B2B”) services
  • Consumer (“B2C”) services
  • eCommerce

FINANCIAL TECHNOLOGY / SPECIALTY FINANCE

  • Payments / transaction processing
  • Asset management
  • Specialty finance

Investment Situations

We invest across a wide variety of transaction situations.

GROWTH CAPITAL


  • Fueling customer acquisition costs
  • Adding sales resources
  • Expanding sales and partnership channels
  • Accelerating R&D and product expansion

BUYOUTS


  • Traditional change-of-control buyouts
  • Backing management to buy out existing shareholders
  • Leading a take-private of a public company
  • Sponsoring a divisional buyout or divestiture of a non-core asset

CAPITAL FOR ACQUISITIONS


  • Sponsoring the game-changing acquisition of a meaningful competitor, a product that fills out the portfolio, or a forward or backward integration for margin capture
  • Sponsoring industry consolidations or build-ups in fragmented, target-rich sectors with attractive fold-in economics

SHAREHOLDER LIQUIDITY / RECAPITALIZATIONS


  • Providing full or partial liquidity for financial, strategic, or management shareholders
  • Cashing out early investors and prior founders to create alignment with go-forward stakeholders
  • Solving for situations where the need for an exit or liquidity event hampers the Company’s ability to drive long-term value