AV Capital’s strategy is to partner with entrepreneurial management teams to transition closely-held middle market companies to institutional ownership and accelerate growth.
We invest in well-run companies with a leading market position in niche industries and a demonstrated history of operational success. We seek opportunities where management teams have taken meaningful personal risk to build their company, and where aligning incentives and providing business owners with wealth diversification enhances management’s focus on growth and value creation through calculated risk-taking.
We are independent thinkers who are committed to spending the necessary time and resources to identify investment opportunities with an attractive risk-adjusted return profile. We are highly selective in our approach, searching for unique value propositions that will drive successful outcomes across economic cycles. Our capital structures utilize modest debt financing to enable aggressive investments in growth initiatives and preserve downside protection. In executing our strategy, we often find compelling investment opportunities that are overlooked by others.
We provide value to our management teams beyond just equity capital. Specifically, we strive to be a force multiplier for executives to work ON their business (strategy) versus IN their business (day-to-day operations). Thus, we add value through strategic decision making at the board level, and focus our time on helping companies transition to institutional ownership, fill out management teams, develop strategic growth plans, expand sales organizations, execute M&A, and optimize financing.
- Control investments in leveraged acquisition, recapitalization, buy-and-build, and growth transactions
- Transition planning for closely-held companies
- Excel in ‘right-fit partner’ situations
- Ability for AV Capital to invest $15-75 million of equity per platform
- Conservative capital structure to enhance returns and support growth
- Meaningful management rollover to align incentives
- Headquartered in the U.S. or Canada
- EBITDA of $4-25 million,10+% EBITDA margins
- Focus on entrepreneur and family-owned niche manufacturing, business services, and specialty distribution companies
PREFERRED END MARKETS
- Commercial & Industrial
- Construction & Infrastructure
- Energy & Utilities
- Plastics & Packaging
- Aerospace & Defense
- Outsourced Services
- Differentiated & sustainable competitive position
- Led by experienced executives with a history of impressive operating performance
- Deep customer relationships with a reputation for high quality products and services
- Favorable growth prospects