Working collaboratively with our portfolio companies to take them to the next level and beyond.
At Strait Lane Capital Partners, (SLCP), LLC, we do what we say. We’re dedicated, proven business professionals with a high close rate and a commitment to collaborating with our business partners to achieve value and find new paths to business growth and success. Our strong internal resources, and deep operational, financial, and accounting expertise; coupled with our significant due diligence capabilities means that we close. We seek entrepreneur or family-owned companies and corporate divestitures and apply a true partnership approach to help them create new paths to value. We have extensive resources, a history of success, a financially methodical approach to investing, and a proven ability to identify opportunities.
Operational expertise and experience
Our partners have been CEOs, CFOs, and executive managers who have run, grown, and taken companies to the next level. We understand how to create value, determine appropriate capital structures, accelerate organic growth, develop and execute acquisition strategies, and bring operational and financial excellence to an organization. We apply our proven methodologies, make decisions quickly, and identify tactical and strategic growth strategies in collaboration with our portfolio companies.
Successful acquisition track record
The SLCP partners have completed more than 100 acquisitions over their careers equaling more than $4 billion in value with most deals being in the lower or middle-market space. SLCP performs thorough due diligence, quickly identifies issues, and makes informed, accurate, and timely decisions, all while maintaining an extremely high closing rate.
Ability to execute on diverse investments
SLCP's investments span leveraged recapitalizations of entrepreneur-owned businesses, acquisitions, and mergers of publicly traded and privately held companies with specific expertise in the purchase of individual divisions or subsidiaries of large, multi-national businesses.
Experience, experience, and more experience
We've run businesses and served on boards. We're experienced professionals having worked as CEOs, CFOs, and in other roles in all aspects of business. We have a deep understanding of how to achieve operational excellence, apply financial discipline, and grow businesses organically and through acquisitions. Our portfolio companies benefit from our judgement and networks and we make quick and informed decisions.
Due diligence is very important in our world. We spend significant time building models and generating our own quality of earnings analysis. We ask a lot of questions. It is rewarding for all involved since it dramatically improves communication and that means we close. Performing our detailed analysis and modeling from the bottom-up ensures confidence in historical and future projections. For instance, we knew immediately from talking to the CEO of one of our targets prior to closing that the owners had under-invested in product testing and approvals. We ensured that the first-year budget allowed for significant and sustained increase in product testing and approvals.
For SLCP, the ideal business has certain characteristics such as possessing a competitive advantage, delivering stable growing revenues which represent a low percentage of the overall cost of an end-product of service, offering business-to-business products and services, and providing growth opportunities. We love businesses in niche markets. For instance, this is why we like the manufacturing of hydraulic generators for fire engines or crossing gates for drawbridges. However, we consider each investment on its own merits and not every investment must possess all of the characteristics of our investment criteria.
If you look at our portfolio companies before and after investment, they are essentially the same people operating the business. We value the experience and knowledge of the existing managers working in the companies in which we invest. We work to support the company's culture, however, we're also open to investments where the seller desires a reduced management role.
If it seems like we're investing our money, it's because we are. This means when we told a public company we would be closing by a certain date, we did. We're well funded with available capital and are committed to making successful investments, creating new value, and staying as involved as the portfolio company management team wishes.
We invest in companies with good track records of growth and performance that need capital to reach the next level, or who are looking to grow through organic and acquisition measures. We don't look for under-performers, we don't invest in the latest "flavor of the month," and we don't have a fixed holding period. We help proven performers grow and reach the next level of success.
While our companies export all over the world, we're primarily focused on businesses with domestic U.S. headquarters given the significant opportunities that currently exist. Where appropriate, we also help these companies grow globally based upon our significant past experience in international business.
Our Investment Criteria
- Control position in investments and/or recapitalizations
- Niche manufacturing, business, or technology companies
- $2 million minimum TTM EBITDA for stable or growing business
- Companies that may be lacking the systems, controls, or management processes other private equity firms require
- Primarily U.S.-based companies
- Companies where we feel our expertise provides value
- $500,000 minimum TTM EBITDA
- Acquisitions where the purchase of 100% of the equity may be possible
- Ability to expand market for platform or add-on company's products
- Opportunity to expand management or other key professional talent within the organization
- Expansion of geographic or client reach of acquired company
See our approach in action.
View case studies