RCP seeks to partner with outstanding business executives with proven experience and a strategic vision for creating shareholder value. In every investment, both RCP and management invest directly in the business, and management has the opportunity to earn additional incentive based equity ownership. RCP does not get involved in day-to-day operational management of its portfolio companies, but rather works with its management partners on plan monitoring, specific projects and at the Board of Directors level. RCP views itself as a resource base to help leverage management's time, experience and focus.
RCP and its management partners typically pursue two primary investment strategies: platform build-ups, where RCP and management identify an industry opportunity, acquire an initial platform company and grow the business both internally and through strategic add-on acquisitions; and growth investments, where management pursues an aggressive internal growth strategy to expand the business organically. In pursuit of either of these strategies, RCP has experience and understanding with a number of different types of transactions, including the following:
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Recapitalization of a Privately Owned Company RCP recapitalizes businesses by purchasing a portion of a company, enabling the current owners to create liquidity while maintaining an ongoing ownership interest. RCP works with the existing senior management team, or if the current owners choose to step back from day-to-day operations, RCP helps to identify new management, often promoting existing individuals within an organization in addition to hiring outside professionals.
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Incubating an Investment Strategy with Executives RCP partners with accomplished executives who have a vision for building a business and are seeking an investment opportunity in a particular industry in which they have direct experience. RCP works with executives from the initial concept stage, before any platform acquisition or investment opportunity is identified, to refine the overall investment strategy and identify and pursue an initial investment platform. Once a platform has been acquired, RCP continues to work with management through the internal growth and add-on acquisition phases of the investment strategy.
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Management-Led Buyout from Corporate Parent RCP partners with management teams who desire to have a significant ownership position in their company and strive to gain autonomy from a corporate parent. In these cases, RCP can lead the acquisition, capitalization and closing process so that its prospective management partners can remain focused on operating the company.
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Growth Investment RCP seeks investments in rapidly growing businesses that require additional capital to support growth initiatives. We are flexible in our structuring approach and are comfortable with both majority and minority ownership positions. We also will invest alongside other private equity firms or other entities seeking to support significant growth of a company.
- Take-Private Transaction of a Publicly-Held Company RCP has experience in taking private well-run public companies. During this process, RCP provides its management partners with sound advice and confidentiality in arranging necessary legal support and financing while they continue to focus on running the company.