Investment Strategy

 

Turnbridge seeks majority ownership investments in companies with outstanding management teams in order to realize meaningful long-term appreciation in equity value for all stakeholders. We seek to be impactful and continuously supportive of our management partners as they operate their businesses; we view our role as strategic and tactical in nature, centered on accelerated growth objectives. Our transactions include growth recapitalizations, management buyouts, corporate spinouts, or other leveraged build-ups. We strive to design efficient capital structures that align our interests with those of our management partners:

Our investments are typically in the form of common stock or units, the same security held by our co-invested management partners

Our equity incentive plans, along with annual cash bonus plans, are designed to be transparent and reward performance by our management partners and key personnel

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 over-leveraged balance sheet


Turnbridge focuses on investment opportunities that possess the following key characteristics:

Industry Positioning

Service and/or product lines that are directly or indirectly dependent on energy and energy-related infrastructure spending and correlated to industry themes identified by the firm

Size

Middle-market businesses (most often, $25 million to $250 million of revenue) with a demonstrated history of organic growth

Structure

Equity investments of $25 million to $100 million per platform, which can be staged over the contemplated investment horizon; preference for majority ownership / control but will consider significant minority stakes in certain circumstances

Geography

Service providers that are principally focused in North America, or equipment manufacturers that are based in North America but may sell into international markets

Attributes

Companies with differentiated service and/or product offerings resulting in sustainable double-digit operating margins in upcycles and defensible positions in downcycles

Management

Experienced management teams who desire a meaningful stake in their company and share our partnership philosophy and values

Investment Horizon

Typically 3 to 7 years; however, the successful achievement of value-creating growth objectives ultimately determines the investment horizon, as well as the cyclical dynamics of the energy industry which can impact strategic timing of investment realizations