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Strategy

Austin bridge.

Find the right partner.
Then inspire, guide and collaborate.

We are low volume and highly selective, searching as much for unique value propositions that will drive successful outcomes across economic cycles, as for people who embrace our collective values and run companies driven by their own purpose. We are committed to building a relationship that lasts beyond exit.

We invest in well-run companies with a leading market position in government technology and niche manufacturing, distribution, and business service industries with 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. 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.

TRANSACTION PROFILE

TRANSACTION TYPE
  • Control investments in leveraged acquisition, recapitalization, buy-and-build, and growth transactions
  • Transition planning for closely-held companies
  • Excel in ‘right-fit partner’ situations
TRANSACTION SIZE
  • Ability for AV Capital to invest $10-50 million of equity per platform
CAPITALIZATION
  • Conservative capital structure to enhance returns and support growth
  • Meaningful management rollover to align incentives

TRANSACTION PROFILE

COMPANY TYPE
  • Headquartered in the U.S. or Canada
  • EBITDA of $2-20 million,10+% EBITDA margins
  • For Government Technology, $3-20 million ARR
  • Focus on entrepreneur, and family/founder-owned government technology, industrial and business services, value added distribution, and niche manufacturing businesses
PREFERRED END MARKETS
  • Government Technology
  • Commercial & Industrial
  • Construction & Infrastructure
  • Energy & Utilities
  • Plastics & Packaging
  • Chemicals
  • Aerospace & Defense
  • Outsourced Services
COMPANY SITUATION
  • 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
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