PEP considers the following characteristics of a potential portfolio company attractive:

• Revenues in excess of $15 million
• Operating cash flow in excess of $2 million
• Proven management team willing to take a meaningful ownership position
• History of stable revenues and cash flow
• Defensible market position
• Well-defined and proven market niche
• Compelling unit economics

Private Equity Partners does not pursue investments in:

• Start-up enterprises
• Markets subject to rapid changes in technology
• Energy exploration and production companies
• Real estate
• Operational turnarounds

Investment Types

Later Stage Growth Capital

PEP will serve as a source of capital for a company with growth opportunities that require funding beyond its prudent borrowing capacity. These opportunities may require additional fixed assets or working capital to support product line extensions, geographic expansion, or increased volume from the base business. PEP will also provide capital to enable a company to complete one or more strategic acquisitions.

Recapitalizations

In certain situations a business owner or group of owners may seek liquidity from their business but desire to retain an equity interest going forward. An equity infusion by Private Equity Partners can facilitate a recapitalization that will allow this to occur. Recapitalizations are also an effective way to achieve a transfer of ownership of a family business from one generation to the next. The recapitalization can be structured to achieve estate-planning objectives, while providing liquidity and positioning the company for future growth.

Management-Led Buyouts

PEP will invest alongside a company's existing management team that desires to acquire a more substantial ownership stake in a buyout from current ownership. In addition, PEP will back an experienced executive or management team that has identified an acquisition target. The acquired business may be either a stand-alone company or a division of a corporate parent.

In all of these situations, company managers retain operational autonomy, while gaining Private Equity Partners as an adviser and strategic partner to help increase the value of their business.