Question: Does Capital Concepts invest alongside other firms or investors?
Answer: Capital Concepts often invests alongside other firms and investors. It is Capital Concepts’ goal to partner with the most strategic resources available to develop the right investor base for the Company’s growth aspirations and value added minds around the table.
Question: Does Capital Concepts require its investments to include majority control?
Answer: Capital Concepts prefers to make control investments, but it is not a requirement of Capital Concepts’ investment thesis.
Question: How much capital does
Capital Concepts typically invest in a company and how is the investment structured?
Answer: Capital Concepts typically invests from $15M to $40M in each of its companies. Capital Concepts invests in some form of the equity structure of the company; depending on the scenario, Capital Concepts’s investment could be structured as preferred stock or common stock.
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Question: Are there any business attributes Capital Concepts prefers in its companies?
Answer: Capital Concepts typically likes to invest in companies that provide quality products/services that meet a market demand and require frequent engagement by the product’s/service’s customer. Positive business attributes of which Capital Concepts seeks in its companies include: long term contracts, proven operating history/management team, recurring attributes to revenue lines, intellectual property and barriers to entry (geographic, regulatory, proprietary methodology, unique assets, etc.).
Question: Are there any over-riding themes in Capital Concepts’ investment thesis regarding market opportunity?
Answer: Capital Concepts invests in companies that have a significant market opportunity for organic growth and/or growth through acquisition. Capital Concepts terms this as “Buy & Grow” or “Buy & Build” scenarios. In each of Capital Concepts’ 20+ platform companies the management teams and Capital Concepts have strategic discussions to identify opportunities to invest in new products/services for growth or expand geographically to drive growth. In at least half of Capital Concepts’ investment companies, the management teams and Capital Concepts have worked together to identify opportunities to acquire other companies/competitors, or make add-on acquisitions, to enhance the profile of the company. In scenarios where additional capital will be required by portfolio companies to make add-on acquisitions, Capital Concepts typically sets this capital aside at the time of its initial investment to provide for future capital needs.
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Question: How long does Capital Concepts normally hold its investment in its companies?
Answer: Capital Concepts raises funds with a 10-year life. Capital Concepts typically invests in companies for 3-7 years, but each situation is custom and is evaluated with each of its specific attributes.
Question: What does Capital Concepts consider its Alpha?
Answer: Capital Concepts professionals are true partners to each of our management teams and partner with them in setting goals for growth, culture building, strategy and everything in between. Capital Concepts has an extensive network of relationships in the industries we invest that help each of our companies form business relationships and better serve their customers and partners.
Question: Does Capital Concepts partner with executives seeking to be a CEO to find companies to acquire and partner together?
Answer: Yes. Capital Concepts uncovers the companies in which it invests in a variety of ways including through executives of which Capital Concepts partners to find companies in a specific industry vertical in which they have expertise / past experience.
Question: What is the financial profile of companies in which Capital Concepts invests?
Answer: Capital Concepts will invest in companies with EBITDA ranging from $3 million to $15 million. |
Question: Does Capital Concepts have a geographic preference for its investments?
Answer: Capital Concepts concentrates its investment activities in the United States. Although Capital Concepts’s companies are headquartered in the United States, all of Capital Concepts’s portfolio companies have revenue streams generated from outside the United States ranging from 5% to 60% of total revenue.
Question: How does Capital Concepts describe its involvement with its portfolio companies?
Answer: Capital Concepts invests in companies with management teams that have a vision to grow a company and the experience to effectively manage that type of growth environment. Capital Concepts does not intend to, or want to, operate the companies in which it invests. Capital Concepts plays an active Board role, business development role, C-level facilitation role and partner role that is required at any given time. Capital Concepts prides itself on helping its companies create value, help its management teams think through strategic decisions and drive growth by utilizing the global relationships our investment professionals have collectively developed over time. |
