Investment Focus

SECTORS 

Consumer

Industrials & Manufacturing

Services

TRANSACTION TYPE

Micro-Cap Buyout: Management Augmentation or Transition

Acquisition and scale-up of businesses with $2 to $6 million of EBITDA

Conventional Buyout:

Acquisition of firms with established management bench strength and EBITDA > $6 million

Special Opportunities and Impact Investments:

Special Situation* – Company with identifiable path to stable free cash flow backed by a tangible asset base.

Impact Investment* – Company creates significant number of livable wage jobs over the forecast horizon in a highly distressed community and has other social benefits.

*40|73 Capital will opportunistically entertain investments in these categories that exhibit the right combination of valuation, growth prospects, social benefits, and other attributes that mitigate the inherent challenges of these investments.

PREFERRED SIZE

Revenue > than $10 million

EBITDA: $2 to $12 million

PREFERRED BUSINESS PROFILE

Recurring revenue and/or high visibility into future cash flow generation, and diverse and/or stable customer base

Identifiable organic and inorganic growth opportunities

LOCATION

US-based firms with a primary focus on the northeastern US.  

ACTIVE MANAGEMENT

40|73 Capital seeks investment opportunities where we generate value, beyond capital, by augmenting or transitioning management. We reinvigorate our companies with entrepreneurial energy and expertise that will result in next level of growth.