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 – Underperforming 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 incorporates other social benefits (e.g. renewable energy, energy efficiency, workforce housing, health & wellness access, healthcare education).

40|73 Capital will opportunistically entertain special opportunity and impact investments that exhibit the right combination of valuation, deal structure, social benefits, special tax treatment, growth & return prospects, 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.