Small Buyout Strategies

Fund-of-Funds

Small Buyout Strategies

We are dedicated to identifying, critically assessing, and investing in the leading small market, growth-oriented buyout managers in North America. We believe that the small buyout market offers the most compelling investment opportunity for investors that seek exposure to high quality, rapidly growing businesses in partnership with knowledgeable and capable equity sponsorship. Our goal is to build well-diversified, thoughtfully constructed portfolios of fourteen to sixteen small market buyout funds with differentiated strategies for value creation; we complement that exposure with  direct co-investments alongside our managers. Investors gain exposure to both established and next generation managers that have proven, consistent track records of sourcing, developing and realizing investments and have generated strong relative and absolute historical returns for investors. We believe that operational and sector expertise can provide more attractive returns relative to generalist buyout funds without differentiated strategies.

Investment Criteria

We invest in leading, access-constrained and established next-generation small buyout managers and direct companies. We target fund managers that invest in rapidly growing, entrepreneurial businesses whose enterprise values range from $30-300 million and whose revenues range from $15-150 million. Our preference is to invest in managers who seek control through majority ownership of the underlying companies. We primarily target managers with differentiated strategies focused on growing parts of U.S. GDP and which require specific domain expertise to exploit opportunities in the following sectors: Consumer, Energy, Finance, Healthcare and Technology.

Investment Criteria

Investment Strategy

  • Small market buyout investments

Geography

  • North America; primarily United States

Types of Transactions

  • Primary limited partnership commitments
  • Direct equity co-investment
  • Secondary limited partnership purchases

Investment Criteria

  • Fund size between $150 million and $750 million (target below $500 million)
  • Established fund management teams and next generation managers

Investment Size

  • Fund commitments of $5-10 million
  • Direct equity co-investments of $1-5 million

Strategies Considered

  • Single-sector (Consumer, Energy, Finance, Healthcare and Technology)
  • Operationally-oriented
  • Niche generalist
  • Special situations
  • Growth buyout

Manager Characteristics

  • Strong, verifiable track records of success
  • Experienced and cohesive team
  • Differentiated and proven strategy
  • Unique sourcing capabilities
  • Proven value creation attributes

Will Not Invest In

  • Credit strategies
  • Real estate strategies
  • Venture capital strategies
  • Funds domiciled outside of North America

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