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At Boathouse, we endeavor to invest in the highest quality lower middle market businesses and management teams. In making investment decisions, we never chase high returns if it means taking on inappropriate levels of risk. Our experience has taught us that in the mezzanine and equity co-invest asset classes, success is more a function of capital preservation than high returns on any one investment. As a result, in our underwriting process we favor companies with top quality management teams, sustainable competitive advantages, high profitability, and end markets that weather cyclical downturns.
We will consider investments up to $15 million. We invest our mezzanine debt and equity capital to support a wide range of transactions:
- Private equity sponsored buyouts
- Management buyouts
- Strategic acquisitions
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- Growth capital
- Dividend payments
- Leveraged recapitalizations
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We tend to invest in companies that meet the following characteristics: |
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| Financial Parameters |
- Revenue of at least $10 million
- EBITDA of $2 million or greater
- EBITDA margins of at least 10%
- Stable historical performance
- Modest capital expenditure and working capital requirements
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| Strategic Parameters |
- Exceptional management team
- Healthy, growing end markets
- Repeatable/"sticky" business model
- Sustainable competitive advantages
- Diversified customer base and longstanding relationships with customers
- Manageable offshore competition
- Ability to withstand business cycles
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