Investment Criteria

 

Falfurrias Capital Partners seeks to make investments in line with the following investment criteria:

Lower Middle Market

Invest in businesses with $5 million - $25 million of EBITDA

Management

Back existing strong management teams, or recruit managers who have operated businesses at least twice the size of our portfolio companies

Create alignment of interests tied to equity value creation

Industries

Invest in industries in which our Principals can leverage their relationships and experience to add value

Strong growth fundamentals

Representative industries include Financial Services, Consumer Products, Health Care, Building Products, Diversified Manufacturing, Business Services, Education, Training and Information Services, Food and Beverage, and Infrastructure Services

Structure

Take control positions in our investments

Invest in family and entrepreneur owned businesses

Conservative capitalization to support growth

Buyouts, recapitalizations, growth financings, and corporate divestitures

Company Characteristics

Proven management team with a desire to grow the company post-transaction

Strong, defensible competitive position in growing industry

Differentiated product features and/or brands

Diversified customer base and product offering

Low seasonality and cyclicality

Opportunities for growth through acquisition

Predictable profitability and cash flow generation