| Industry |
Basic industries including manufacturing, service, transportation, and distribution that, in general, are not subject to rapid technological change or wide cyclical swings.
Well defined industry focus and a strong competitive position in its marketplace.
Industries that have significant barriers to entry.
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| Size |
Revenues of at least $15 million.
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| Historical Cash Flow |
Minimal historical cash flow for the preceding 12 months of $2 million.
Cash flow adequate to service projected debt level.
Moderate level of total debt to cash flow.
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| Management |
Strong, experienced and entrepreneurial management team.
Manager/owners who have a significant ownership interest or risk capital in their company.
Clearly defined strategic vision with the experience and dedication to meet the potential challenges of a rapidly growing business.
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| Capital Structure |
The post-investment financial structure must fit the particular capital requirements of the company that will provide sufficient long-term capital for growth.
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| Operating Systems |
The Portfolio Company should have strong internal controls in both the financial area as well as the administrative areas.
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| Exit Strategy |
The strategic plan should include a time frame and a mechanism for realization of shareholder value. Acceptable exit strategies include the sale of the Company, re-capitalization, or an IPO.
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| Geography |
Western United States, with the primary emphasis on California.
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| Investments Not Considered |
Early Stage Companies
Turnaround Situations
Rapidly Changing Technology
Real Estate
Leasing or other Financial Lending Companies
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