We are a Houston-based private equity firm focused on acquiring lower middle market industrial companies.
Our strategy is to generate attractive, risk-adjusted returns over the long term through a combination of active sourcing, disciplined valuation, modest financial leverage and structured value creation programs.
Conversely, our goal is NOT to generate returns through aggressive financial leverage or through valuation arbitrage (or “flipping”). We believe in the power of compounded returns and as such, our investment philosophy is to buy, build and hold.
Our capital base consists of our own hard earned capital as well as that of likeminded family offices and high net worth individuals. With a longer investment horizon than a traditional private equity fund, we rely less on financial leverage to drive returns than we do on the hard work of our management teams.
years investment experience
Our founders worked together for over a decade at a large and highly successful institutional private equity fund manager. Collectively, we have over 40 years of investment experience and have participated in 25 acquisitions for a total of $3.5 billion.
One challenge that we believe the traditional, institutional private equity model faces is the pressure on fund managers to “sell the winners.” In our view, winners are the investments that you should hold onto forever, or at least until somebody wants to own it more than you do. Furthermore, the institutional funding model creates incentives to invest in larger and larger companies, leading to fewer opportunities to structurally improve companies through applying best operating practices.
In light of this, we set out to start different type of firm: one with a private, patient capital base and one consistently focused on the lower end of the middle market, where structured value creation programs can have a more meaningful impact. We have built a model where we want to invest our own time and money and believe that it is ideally suited for owner-entrepreneurs and management teams as well.