Investment Focus

Doctor talking with a business partners in an office inside a medical office

CORE SECTORS 

Services:

  • Business Services, Industrial Services, and Infrastructure Services
  • Healthcare

Consumer:

  • Multi-unit Franchise
  • Private Label
  • Premium & Long-Standing Niche Brands

OPPORTUNISTIC STRATEGIES

Special Situations & Complex Transitions:

  • Mandate: Resilient or asset-backed businesses navigating temporary operational plateaus, generational shifts, or correctable missteps with a clear runway to cash stabilization.

Impact Investments

  • Mandate: Companies with a credible plan to create livable-wage jobs in highly distressed communities and/or integrate social benefits (e.g., renewable energy, workforce housing, healthcare access/education).

TARGET PROFILE

  • Geography: United States only
  • Revenue: $10M minimum for platforms (lower threshold based on other factors)
  • EBITDA Core Mandate: $2M to $20M (opportunistic up to $40M for scaled platforms)
  • EBITDA Margins: 15%+ with predictable free cash flow conversion
  • Revenue Quality: High-visibility streams characterized by sticky customer relationships, contracted revenue, and/or low customer concentration
  • Transaction Types: Control buyouts, majority recapitalizations, and corporate divestitures

ACTIVE MANAGEMENT

40|73 Capital targets investments where we can deliver transformational value by supporting leadership development, expanding executive teams, and implementing seamless management succession.

We focus on a highly concentrated portfolio strategy, limiting the number of active platform companies we hold. This deliberate focus ensures our partners receive undivided operational resources, entrepreneurial agility, and institutional expertise to execute complex growth plans.

By directing our time and resources toward a select group of platforms, we actively accelerate programmatic expansion—driving organic growth while deploying dedicated resources to source, execute, and integrate strategic add-on acquisitions.

Furthermore, our concentrated model deepens alignment with management; because every member of the 40|73 Capital team—including our operating executives—invests personal capital alongside our partners, we cultivate an environment of deeply shared risk and reward.

This financial alignment reinforces our dedication to navigating integration challenges, scaling geographic footprints, and compounding enterprise value together.