Our Approach
What we look for:
We provide equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued between $15 and $50 million. We can be flexible in our structure and can offer creative solutions. Our investment philosophy is governed by the following themes:
Proven Management
We believe quality management is the primary driver of success.
Value Creation
RCap works with management to develop strategic direction and key growth initiatives. We identify opportunities for operational improvement, revenue growth strategies, add-on acquisitions, and management development. We also work with management to strengthen financial systems and controls.
Alignment of Interests
Our transactions are structured to closely align the interests of all our partners to ensure that all are focused on value creation in our companies. Often sellers will maintain a significant ownership and a strategic role following a transaction.
Flexible Capital Structure
We ensure that each company’s balance sheet is designed to support its strategic plan. While most of our acquisitions are leveraged, the degree of leverage and the debt structures utilized are tailored specifically to each individual company.
Long-Term Perspective
Our investment horizon is flexible and aligned with management’s objectives for achieving long-term sustainable value. We are not limited to the parameters of an investment fund and have the patience and flexibility to successfully execute our common strategic objectives.
Trusted Partner
We seek to be a valuable partner to management and trusted co-owner of the business. Our role is to support management and utilize our experience and resources to help create value.