| The investment objective of
SouthPointe Ventures is long-term capital appreciation, with
current income a secondary consideration. To implement our
investment strategy, we employ a focused approach and a rigorous
investment discipline. We are skilled in the disciplines necessary
to understand a company and its future, including its market,
competition, products and services, personnel, vendors, customers,
regulatory issues, financial structure, and growth opportunities
and threats. When available, we will bring on an associate
from the industry in which a company we are investigating
is in, to give us a real "insider's" look at the
business and industry.
Our approach includes exploring, analyzing and promoting
Portfolio Company business opportunities. We strive to help
Portfolio Company managers in developing their business
strategy, resolving technical issues and recruiting executives
to complement the management team for the Portfolio Company.
To help build value and monitor the Fund's investments,
we will also participate on the Board of Directors of Portfolio
Companies, and add additional value by assisting Portfolio
Companies in managing and arranging working capital and
expansion financing.
We want our Portfolio Company managers focused on running
the business, so we strive to employ modest financial leverage.
We attempt to achieve acceptable investment returns while
avoiding the cash drains and balance sheet stress and distractions
that too much debt creates.
Our primary investment criteria is
as follows:
- Southeastern United States geographic focus (except
for add-ons to existing companies).
- Revenue of $5 million to $30 million
- Minimum EBITDA of $1 million (except for add-ons).
- In-place management or already identified succession/replacement
management, who will co-invest their own capital along
side of the Fund.
- Established product or service in stable, growing market.
- Acceptable financing from seller and/or third party
lender.
- High probability of reasonable growth each year.
- Reasonably identifiable potential exit option(s).
- No start-ups, turnarounds or real estate investments.
- Majority control (or minority investor under special circumstances).
|
