Egret is a specialized private equity firm with a very clear idea
of the kind of opportunities to which we can bring the most value.
As such, we focus on investments that fit the following
Manufacturing and Business Services
The ability for us to truly add value is highest in those areas
where we bring a substantial amount of experience and expertise. We
look at a broad range of businesses including opportunities in the
Facilitators of back office functions
Printing and publishing
Third party logistics
Based in North America
While our principals have lived and worked around the world, we
believe in spending a substantial amount of time in close support of
our management teams. For that reason we limit our investing to
companies whose principal operations are based in the United States
Revenues of at least $10 million, with EBITDA/free cash
flow up to $5 million
Egret concentrates in what is known in the industry as the
‘lower-middle market’, and seeks companies that have recurring
revenue from an established customer base.
Long-term Investment Horizon
While we ultimately are seeking a significant financial return, we
are very patient investors. We anticipate from the outset that our
involvement with the companies in which we invest will extend for a
number of years.
Potential for value enhancement
An attractive investment to us is one where there is a potential for
significant growth and equity improvement. We seek companies in
large and growing markets with scaleable business models and
sustainable competitive advantages. We also prefer to see numerous
customers, fragmented competitors, proprietary distribution or
technology, and a low level of capital expenditures. Due to our significant strengths in finance, operations and growth management we will consider currently unprofitable opportunities facing capital shortages that otherwise meet our criteria.
A Majority Investment
Our ongoing support is most effective when we have a clear position
at the board table, so Egret targets those enterprises in which we
can acquire a control position.
We recognize that liquidity and diversification may be important
drivers in the search for outside investors and are prepared to help
owners achieve those goals in a tax effective manner. However, since
our success depends on the success of a company’s management, we
insist that the executive team be fully engaged with a significant
equity interest in our joint future growth. We seek investments
where the core management team is in place and is interested in
either retaining significant equity involvement with the company (in
the case of owner-operators) or acquiring such an interest.