Our investment philosophy is to invest in companies that typically have strong management teams, a scalable business model and the potential to become a regional leader in their respective fields or markets. The companies should be profitable or have the potential to quickly realize profit, should have been incorporated for at least two to three years or have a business plan that can demonstrate profitability and pass our rigorous due diligence processes.
The envisioned value creations we offer our portfolio companies are proprietary deal sourcing, business expansion opportunities, legal and regulatory assistance, corporate structuring advice and assistance, tax advice and assistance, financial reporting modeling, support and advice, back-office support and advice, IT support and advice, regional synergies and industry consolidation. A typical holding period for an investment of a portfolio company would be 3-5 years although we often evaluate potential investments with both a shorter and/or longer holding period.
We generally have two categories of investments, core investments and strategic equity investments.
Core investments range from approximately $2 million up to approximately $50 million, although we also have the interest and capacity to lead an investment in a single transaction much larger figures dependent on the type of transaction and the commercial terms. Our core investments may utilize proprietary capital and/or use external investors.
Strategic equity investments are made in amounts of as little as $1 million. They are made in companies of interest us which may not meet all investment criteria for larger investment, or which may not have an immediate need for a larger investment. We make strategic equity investments in situations where an opportunity is identified for a material follow-on investment in the future.