Will you invest outside of your HLP partnerships?

We are frequently approached by other members of the ETA community, or deal-makers from beyond, with opportunities to invest in “deals.” We prefer to restrict our investments to our partnerships and thereby with entrepreneurs we know very well. While we support the search community as a whole, we will not buy units in search funds, or provide bridge capital to help close under-subscribed acquisitions financed through this model. Likewise, we would not consider investing in other “deals” (self-funded, independent sponsor, etc.) on an opportunistic basis.

What is your expected holding period for each investment?

We would prefer not to sell productive investments and like to work with partners who have a long-term perspective on their entrepreneurial journey.  That doesn't mean we would never sell.  It means we prefer to invest in businesses and with partners who will generate sustainable value over the long-term.  If someone approached our partner with "an offer we couldn't refuse," we would certainly consider it.  If our partner decided she no longer wanted to lead the company, then we'd have to work with that partner to determine the best plan for the company (sell, find a replacement for CEO, etc...). We enter into an acquisition with the expectation that we will own the company with our partner for decades.