Ridge Capital Partners, LLC invests in lower middle-market companies in manufacturing, distribution and business/consumer services industries.
RCP is focused on investing in companies that meet certain strategic, operating, and financial characteristics. These parameters include the following:
- An accomplished management team willing to make a financial commitment to the future success of their business, but we will also work with existing management teams who are retiring to find a suitable solution that meets the needs of the owner, employees, and customers.
- A core business with a sustainable competitive advantage in its market segment, derived through a combination of proprietary products or services, low cost production, and/or superior service or distribution capability.
- Ongoing growth trends in the industry and industry sub-segments.
- Significant prospects for revenue growth, expansion of profit margins, and additional opportunities to expand business scope either through acquisitions or internal growth.
- Minimal exposure to technological or strategic business obsolescence.
- Revenue typically between $15 and $100 million with earnings before interest, taxes, depreciation and amortization (“EBITDA”) between $2 and $20 million and a history of profitable operations. RCP will consider companies below these size ranges if they possess high growth characteristics or create a strategic fit with a current RCP portfolio company.
- A fit between RCP and its prospective management partners. RCP’s approach is that there should be interpersonal chemistry, a sense of teamwork and a commonality of goals and objectives.
Absent special circumstances, RCP is not interested in stand-alone turnarounds, hostile takeovers, start-up companies, or businesses in highly regulated or commoditized industries.