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Investment Profile

Philos Partners is looking for companies that meet the following requirements:

The Company's Characteristics:

  • Critical items or services
  • recurring revenue or a high level of free cash flow
  • strong management teams and investors who share our goals
  • significant competitive advantages, defendable market positions, and widespread product adoption
  • financial structures with a sufficient margin of safety
  • Investing theses that can be verified through extensive due diligence
  • Identifiable acquirers even in less-than-ideal operating conditions
  • Although based in North America, it may have international operations

Size of Investment:

  • Tens of millions to one hundred and twenty-five million dollars
  • You can get a lot more money with co-investments and limited partners.

Types of Transactions:

  • management buyouts
  • growth initiatives
  • reorganisations (including dividend recaps)
  • balance-sheet refinancing
  • generational transfers and ownership shifts
  • buy-and-build strategies are a subset of buy-and-build strategies that include mergers and acquisitions (M&A) or industry consolidation.

Business Size:

  • Enterprise value ranging from $10 million to $500 million

Structure:

  • a variety of instruments, including equity, subordinated debt, or a combination of the two
  • We only invest in subordinated debt when we have a significant stake in the transaction.

Not Considered:

  • Startup financing, real estate, financial institutions or underwriters, energy products, and project finance are a few examples.