Management Team. We prefer companies with quality management teams and a demonstrated ability to grow profitable businesses in their target market. The depth and character of the management team are critical factors, and will have a significant impact upon our investment decision.
Investment Location. Historically we have preferred investments in companies with headquarters in the Southwestern United States. Occasionally, we pursue deals in other locales. Selected Interests executives typically serve on the Board of Directors of those companies in which a significant investment has been made.
Investment Size. Our investment levels typically range between $1.0 Million and $10.0 Million. However, we are capable of providing access to capital in larger amounts, and will review investment opportunities in the $20 Million to $40 Million range where circumstances warrant.
Ownership Percentages. We normally purchase in excess of fifty percent (50%) of the voting capital of a target enterprise. We do however prefer that existing management continue to run the company’s operations. We also make minority co-investments with like-minded partners in areas where we have particular expertise/interest.
Investment Horizon. We are patient investors, and are typically willing to maintain our investments in portfolio companies for three (3) to ten (10) years prior to realizing liquidity through a harvest event.
Industry Focus. We prefer investments in the distribution, manufacturing, services and post-secondary for-profit education sectors. This preference does not preclude our looking at other sectors if the management, market, and metrics are compelling.
Financial Characteristics. We prefer providing capital to companies that have a demonstrated track record of revenue growth and profitability. We are particularly interested in companies that seek capital in order to pursue substantial growth opportunities through geographic or product-line expansion.
Market Size. We prefer partnering with companies whose products or services offer compelling advantages to a broad customer base in large, well-established markets that are accessed through clearly-defined distribution channels. Companies that enjoy strong competitive barriers to market entry are particularly attractive to Selected Interests and our affiliates.