Investment Profile

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 profile:

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 following areas:

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 or Canada.

Revenues between $15 and $50 million, with EBITDA/free cash flow less than $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. Due to our significant strengths in finance, operations and growth management we will potentially consider currently unprofitable opportunities that otherwise meet our criteria.

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.

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.

Management Involvement
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.