Investing in the generational transfer of small business ownership
We see an incredible opportunity and we’d like to share it with you.
The Opportunity
A once-in-a-generation buyers’ market
Over a million small businesses are owned by Baby Boomers. Most will change hands in the coming years as their owners age into retirement.
Businesses under $5M in EBITDA are generally too small for private equity firms, so acquisition multiples — and therefore prices — are very attractive.
The growing supply of small businesses for sale is setting the stage for a once-in-a-generation buyers’ market.
There is a small and growing community of skilled entrepreneurs focused on buying and operating these businesses.
Why Invest With Us
Access an appealing but otherwise opaque asset class
Potential for outsized returns while avoiding the high risk associated with startups
Diversified across industries, geographies, strategies, and sponsors — with low correlation to traditional asset classes
Passive investment vehicle requiring no involvement in the businesses themselves
Tax advantages delivered via depreciation write-offs and, where applicable, QSBS treatment
Strong alignment of interests through entrepreneur co-investment and performance-based compensation
Our Strategy
Investing in enduringly profitable small businesses
We acquire established companies fitting a specific profile in partnership with highly-qualified entrepreneurs.
Target Business Profile
B2B company
Stable EBITDA in the $1M – $5M range
Diversified base of repeat customers
Over 10 years in business with durable earnings
Sustainable barriers to competition
We will not invest in businesses that are:
- Cyclical
- Technology-centric
- Overly dependent on a few key suppliers
- Overly dependent on a few large customers
- Reliant on the skill of the previous owner
Target Entrepreneur Profile
Independent sponsor
Co-investing in the acquisition
Strong track record and professional references
High degree of integrity, humility, and energy
Focused on fundamental value creation
Professional experience includes:
- Managing a P&L
- Leading teams
- Directing business operations
- Establishing strategic direction
- Overseeing company financials
Portfolio
Our Investments
Our Team
Meet the Partners
Our Partners bring a breadth of expertise across multiple disciplines and industries, have owned, operated, and exited companies themselves, and share a passion for empowering entrepreneurs.
Contact
Let’s start a conversation
Interested in learning more about investing with us? Fill out the form to start the conversation.
Message Received
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Fund III