Investment Strategy
Turnbridge’s objective is to complete majority ownership investments in companies with outstanding management teams to achieve significant long–term appreciation in equity value for all stakeholders. Historically, our transactions have included traditional management buyouts, corporate spinouts, leveraged build-ups, infusions of strategic growth capital and shareholder recapitalizations. We will consider financially distressed situations, though we do not pursue operating turnarounds.
We strive to design simple, efficient capital structures which clearly align our interests with those of our management partners:
- Our investments are typically in the form of common stock, the same security held by our co–invested management partners;
- Our equity and annual bonus incentive plans are designed to be transparent and reward performance by our management partners and key personnel; and
- Our use of leverage is moderated as appropriate for the opportunity so that our management partners can focus on execution of their growth objectives, rather than the constraints of an overleveraged balance sheet.
Typically, Turnbridge focuses on investment opportunities which possess the following key characteristics:
- Middle–market companies that are capturing market share in an identifiable niche at an accelerating pace, with barriers to entry that can be understood and assessed;
- Industries that are large, display premium growth rates and are important to the domestic economy;
- Companies that produce superior economic returns and can generate growth through both organic and acquisition initiatives; and
- Experienced management teams who desire a meaningful stake in their company and share our partnership philosophy and values.
Our investment horizon is generally four to seven years, although this varies depending upon the specific circumstances of each portfolio company.