1. Focus on small and middle market companies:
- The enterprise value of a typical company we may invest in ranges from $50 to $500 million.
- Longer cycles of opportunity and ample prospects at the smallest end of the market. Regardless of any economic cycle, there is always an ongoing supply of smaller companies in special situations who would benefit from our turnaround experience/expertise.
2. Invest when we are “Ready to Own”:
- Is the company competitively positioned in its markets to be successful over the long-term?
- Invest when the business enterprise value is attractive on a long-term basis in comparison to competitors and its historical valuation.
- Target the fulcrum security in the capital structure.
- Analyze the risk/return features of the fulcrum security to ensure a successful outcome is accretive to the Fund’s return objectives.
3. Utilize our expertise/experience to add value:
- If Necessary, utilize position in the fulcrum security to influence any reorganization process for a successful outcome.
- Work with management to structure negotiations to maximize the financial benefits and improve the overall competitive position of the business in its markets.
- Actively engage with management and other stakeholders putting forth initiatives as a board member or large shareholder.