INVESTMENT CRITERIA

Capital Concepts seeks to lead small market buyout investments in its areas of expertise. The firm tries to utilize its long-standing industry relationships and extensive network of relationships in order to source management teams and proprietary deal flow or opportunities where there is a distinct competitive advantage. The Investment Professionals pursue superior risk/return investments that we believe are "under the radar screen" at the smaller end of the market.

Investment Size

Capital Concepts' ideal investment size range is $15 - $40 million. This transaction size allows Capital Concepts to often avoid the more competitive auction environment typically found in larger transactions. Capital Concepts expects to be the lead investor in transactions and often brings in limited partners as strategic co-investors in investment opportunities that require additional equity capital where Capital Concepts’s collective skills and experience can create value.

Stage of Development

Capital Concepts seeks to acquire cash flow positive companies in buyout transactions. The typical financial profile includes minimum revenue of $10.0 million and minimum EBITDA of $3.0 million.

Diversification

Capital Concepts will not allocate more than 20% of the fund's capital to any single investment. Sector diversification within the targeted industry segments is also considered as we allocate our fund’s capital.

Geography

Capital Concepts' investment focus will be exclusively focused on businesses headquartered in North America. However, certain of Capital Concepts’ investment companies have international operations, sales and team members.

Investment Horizon

Capital Concepts expects to realize investment returns through a sale, recapitalization or initial public offering within a three- to seven-year time frame. Investments that provide multiple exit strategies are preferred, but the key factor is finding companies to invest in that have superior growth profiles with dynamic, experienced executive teams.