Permanent capital and a deep history of investing across industry segments.
Allows us great latitude in pursuing opportunities that may not fall into one of our core defined sectors, but are otherwise attractive investments. We deliberately seek out opportunistic investments as part of our sourcing strategy.
Investment Criteria:
These “opportunistic” situations will typically possess many of the below attributes:
Require less than a $50 – $75 million initial equity investment
Possess clear points of differentiation and a protected competitive position
Stable to growing sector with above average profitability, margin performance, ROIC, and other operating metrics
Fully-developed management team interested in ongoing roles post-acquisition
Diverse customer and supplier base
Not readily susceptible to technology displacement nor deep cyclical risks, and not overly regulated
Knowledge advantage that can be provided by Stephens Group, our extended network or through partners whom we know and trust
Process advantage driven by various dynamics such as an aligned family seller, small sale process, or an opportunity offered to us by an investment partner who has an advantage
As in our core defined sectors, we typically require the opportunity to participate in detailed, primary due diligence during the investing phase, board governance post acquisition, and a meaningful overall ownership stake in the business.
