Transaction Types for Our Investments
We target equity investments of $10 million to $50 million and pursue both majority and minority equity positions in growth companies at various stages of development. Our capital can be used for a variety of purposes and can be structured in a host of different ways, each uniquely tailored to address the opportunity presented.
Below are examples of the types of transactions we focus on:
Growth Equity Investments
Growth capital is typically structured as preferred stock for a minority ownership position. Growth equity investments enable companies to take advantage of current market opportunities and accelerate growth organically. Growth equity investments can fund business initiatives such as technology development, infrastructure improvements, accelerated hiring and geographic expansion. For companies in the high-growth phase of their lifecycle, an infusion of capital can mean the difference between being an industry leader and an industry laggard. In addition to capital, Generation Partners provides management teams with sound business advice on both operating and strategic level, with experience gained through years of working with companies in this critical stage of development.
Shareholder Liquidity Investments
Founders and other shareholders may find themselves in a position where most of their net worth is tied up in one company. An investment by Generation Partners allows these individuals to retain an equity stake in their business, yet at the same time, diversify their financial holdings beyond the company. Each situation is different and we believe that “risk comfortable” managers can make better decisions for their companies. Generation Partners can take a minority or majority position, depending on the needs of the selling shareholders.
Business Add-on Acquisitions
Acquisitions can be an important part of a company’s growth strategy. Having an experienced partner to not only help finance business acquisitions but also assist on the identification, financial analysis, operational due diligence, and post-merger integration, can be critical to success. Generation Partners has experience providing capital to companies which are seeking a single acquisition as well as those seeking to implement a roll-up strategy.
Corporate Divestitures & Spin-outs
Generation Partners can provide public or private companies a financial partner in the event of a divestiture or spin-out. Generation is an experienced, high integrity investment firm with a long history of completing acquisitions in a timely fashion at the agreed upon terms. Our large network of industry executives allows us to quickly augment the management team, should the need exist. Generation provides both equity capital and decades of expertise in negotiating transactions, leading due diligence, determining the best capital structure, arranging the most favorable senior and subordinated debt and designing excellent management incentive plans. Most importantly, we provide strategic, operational, and financial advice post-closing.
Venture Capital Investments
Generation Partners invests in great companies with strong managers at many stages of development. Within our venture capital efforts, we look for companies led by CEOs with a proven successful track record who have built their business model to take advantage of key secular industry trends. We focus on companies which are already established with numerous customers, a solid value proposition and a clear path to profitability.
Management buyouts allow executive teams the opportunity to take an equity ownership in a company that has been made available through a corporate divestiture of public or private shareholders. Our firm has a long track record of successfully executing management buyouts and can provide strong references to sellers that we will do what we say we are going to do. In many cases this is the key determinant of the seller’s selection of a buyer because certainty of closing is critical to the stability of a company and its employees. Generation provides the equity capital and has 20 years of expertise in negotiating transactions, leading due diligence, determining the best capital structure, arranging the most favorable senior and subordinated debt and designing excellent management incentive plans. Most importantly, we provide strategic, operational, and financial advice post-closing.