COMPANY INVESTMENTS
Investment Objective    Investment Characteristics     Investment Philosophy     Investment Approach

Investment Objective

NEW TRIER CAPITAL PARTNERS, LLC (“New Trier”) is a strategic buyer seeking to make investments in financial companies, building, construction, remodeling and in-home services for installed product companies across the residential and commercial markets such as building products manufacturers, distributors, home services industries, building service companies, construction service companies, interior remodeling firms, custom fit and installation products and real estate service companies.

Additionally, our Company Investments Business focuses on the lower middle-market, which we have identified as an underserved niche, providing us an opportunity to invest growth capital alongside seasoned, successful senior level management with relatively little competition.  Our Principals and our Advisory Board work directly with management and take a more hands-on approach than our competition, which lends itself to less competitive situations, as well as realizable growth strategies.

The objective of Company Investments is to achieve superior returns from investing capital in high growth companies and through leveraging the operational and executive expertise of our principals and our Advisory Board. NTP looks for unique business opportunities with compelling growth prospects, providing companies with funding and support needed to grow to the next level.

We intend to focus our Corporate Investment efforts on the lower middle-market, defined as companies with revenues of $5 million to $100 million and adjusted EBITDA (earnings before income taxes, depreciation and amortization) of $1 million to $10 million.  We believe we have identified an underserved niche, where high quality companies are in need of growth capital as well as seasoned, successful senior level management and corporate development experience to reach the next level. Typically, companies with less than $10 million of EBITDA are underserved by the private equity market, mainly because they are considered “unsophisticated” or too small to attract the interest of larger industry players. By providing these companies with capital and experienced business partners to assist in implementing the capital, the ultimate goal is an exit strategy to a larger financial or strategic buyer.
Investment Characteristics

New Trier Capital Partners looks for unique business opportunities with compelling growth prospects, providing companies with funding and support needed to grow to the next level.

Our Investments focus on the lower middle-market, which we have identified as an underserved niche, providing us an opportunity to invest growth capital alongside seasoned, successful senior level management with relatively little competition. Our Principals and our Advisory Board work directly with management and take a more hands-on approach than our competition, which lends itself to less competitive situations, as well as realizable growth strategies.

New Trier Capital Partners, LLC will place immediate attention on installing sales frameworks, marketing controls, lead generation systems and other strategies that have produced previous successes.

We focus almost exclusively on generating proprietary deal flow from our substantial network built up over the last 25 years, including advisory professionals, business owners and larger industry competitors who cannot justify investment opportunities with less than $25 million EBITDA. Through pre-existing strong relationships with the respected full charge CEOs of companies (including Michael Klein and Robert Goldstein), we have cultivated a strong pipeline of highly attractive investment opportunities. This group also obviously provides the New Trier Partners and its portfolio companies with access to the unique skill-sets and varied experiences of the individuals. Many of these paid and equity incentivized Executive Partners have already made substantial capital contributions to New Trier through its prior investments.

Size of Company: • $5 to $100 million revenue
• $1 to $25 million EBITDA (Turnarounds and stagnant growth businesses will be considered)
Investment Size: • $1 to $50 million
Focus: • Home and Commercial services & Installed products businesses
• Residential and Commercial Remodeling
• Building products (manufacturing and distribution)
• Custom construction products (manufacturing and distribution)
• Building and construction services and management (General and Subcontractors)
• Real estate services (Property Management and Appraisals)
• Professional design and engineering services
• Construction related lenders
Target Criteria: • Opportunities arising from housing market impact
• Profitability and growth outlook (Turnarounds included)
• Minimal government regulation
• Have control of or are desirous of having their own Sales and Orders Process
• No single large customer
• Pricing not dictated by customers (no – bidding or auctions)
• Related to core competencies of NTP principals
• Ability to transfer knowledge to new ownership from existing management
• No heavy ownership relationship driven sales structure
• Under performing divisions or brands of large conglomerates
Geography: • United States & Canada 
Use of Capital: • Opportunities arising from housing market impact
• Shareholder liquidity or recapitalizations
• Restructuring expenses for corporate turnarounds Investment
Structure: • Majority ownership, although co-equity investments and minority positions will be considered on a selected basis.

 

Investment Philosophy

The Marketplace
We have identified an underserved niche where mature companies are in need of growth capital and senior level management and corporate development expertise to reach the next level. There are approximately 140,000 companies in the US with revenues between $10 and $100 million. Because of the lack of focus on the lower end of this range, there is far less marketplace competition for these companies.

By providing capital and experienced business partners to assist in implementing successful strategies – these firms can realize their true potential, making them attractive to larger financial and strategic partners down the road.

The Advantage
Not only do we direct much-needed financial capital into strategic growth initiatives that propel these companies forward, we provide an influx of fresh, innovative ideas – insights from top business thinkers with proven track records in successful business building. By assisting companies in building their businesses – by providing vital capital, strategic counsel and access to our extensive business network – we create a winning situation for both companies and those who invest resources to grow their value.

As experienced and successful entrepreneurs and CEOs, we recognize the true value of investments beyond the published information, “offering book” and standard industry research. We seek early answers to subtle questions that, in many deals, surface only after transactions are completed. These may take the form of operational and structural problems that traditional consultative due diligence teams cannot uncover or pass as reasonable practice.

This confident approach eliminates far more acquisitions than most private equity and investment groups tolerate, but improves New Trier’s success rate exponentially. Only through heavy hands of full charge CEO experience (not to mention the good old fashion “gut check” that made them successful in the first place) can you spot the subtle but prevalent pitfalls of many business investments. Real success, in fact, goes beyond the financial due diligence that typically leads the decision making process. The ability to say “no” to opportunities until the “nugget” appears is a discipline often overlooked – or overshadowed by the irresistible allure of deal, success and management fees. New Trier Partners refuses to be a party to that practice.

Investment Approach

We believe the best way to create value for our investment partners is to build stronger, larger, more competitive companies. That is why our immediate focus is on business building, not business buying or selling. New Trier Partners invests alongside management groups with significant equity stakes in their own companies. With this approach, our interests are aligned with company management’s – to grow the business and sell it in due course (typically 5 to 7 years). This creates a “win-win” for all parties throughout the process – and a powerful incentive on the part of these companies to select New Trier Partners as a source for both capital and advisement.