Investment Criteria
We provide funding for growth financing of existing businesses, management–led buyouts, acquisition financings, and minority recapitalizations.
Our investment criteria are:
- Excellent Management: Management teams with a proven record of achievement, exceptional ability, unyielding determination, and unquestionable integrity.
- Investment Size: $5 million to $15 million of equity capital. We occasionally partner with other investors to engage in larger transactions.
- EBITDA: Near–profitable to $10 million.
- Growth: Historical growth of at least 20% per year, sustainable into the future.
- Market Size: Growing rapidly or large enough to allow company to achieve $100 million in revenues.
- Industry: Diverse industries.
- Location: United States, though most focused on the Southwest, Southeast, Midwest and
Mountain Regions.
- Quality referral from a reputable source: Because management is the cornerstone of our investment philosophy, it is helpful if mutually-known parties reach out to us on your behalf (not as retained advisors). Accomplished managers generally have prior investors or directors willing to speak on their behalf.
Capital Southwest will not consider investments in: startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies / turnarounds, and companies in which significant senior management is departing.
In addition to our principal investing activities, we actively pursue acquisition candidates for our portfolio companies. See "Portfolio Add-on Acquisitions" for our current areas of interest and specific criteria.
Please contact us today regarding your financing needs.
