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Investment Philosophy

Over the years, we have found that the investment opportunities that fit us best are situations where the owners/operators of the business would either like to (1) realize some personal liquidity from the time, effort, and resources they’ve invested over the years to grow their company, or (2) are looking for a partner to provide financing for a plant expansion, new equipment, or expansion into a new market. These owners/operators  also want to start developing a longer term plan for the transition to the next chapter in their life, but they are not ready to completely exit the business. In many instances, they don’t have a management succession plan in place and often don’t even have a candidate in-house that can run the business upon this transition.

That’s where HCP comes in. In the situations where ownership transition is the objective, we will acquire a significant ownership stake  in the company and the owner/operator will receive some liquidity and retain some meaningful ownership. They will continue to run the business post-closing, but we will work together to develop and execute on a long term strategic growth plan and to expand the management team in order to help the owner/operator develop a clear and comfortable path for their eventual exit from the business. Our investment allows the owner/operator to continue to manage their legacy.

In the situations where raising capital to support growth is the objective, we will structure a flexible investment in the form of equity or debt and take on a role as an active board member helping management develop and/or execute on a growth plan.

Because we are investing our own capital, we can be flexible on how and when we ultimately get liquidity for our investment. This gives us the ability to truly invest in the long term growth of the business. It also allows the owner/operator to remain involved in the business they founded and built over a longer time frame. We call this approach Partnership from a Different Perspective.

Are you a business owner or part of a senior management team that is ready to take the next step? Let’s talk.