A capital partner who understands the deal.
We work with independent sponsors as minority equity partners in lower middle market acquisitions. We understand the complexities of getting a transaction from LOI to close, and we aim to be a thoughtful, responsive capital partner through underwriting and beyond, bringing our own substantial transaction and operations experience.
The shape of a PROX deal.
We publish our criteria so you can qualify a deal before you spend time on it. If an opportunity sits outside these parameters, tell us anyway. We would rather say no quickly than leave you guessing.
- Business Size
- Adjusted EBITDA of $1M–$5M
- Check Size
- $500K–$2.5M
- Position
- Minority, non-control equity
- Geography
- US based, lower 48
- Industry
- Agnostic
Check size varies based on each deal, company size, risk, growth potential and portfolio diversification.
Every deal is different. Our approach reflects that.
Sponsors do not need another investor who takes six weeks to say maybe. Here is what you get from us instead.
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01 Straightforward
We tell you where we stand
We communicate clearly about what we like, what concerns us, and where we are in our own process.
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02 Flexible
We read each deal on its merits
Capital structures, sponsor roles, and transaction dynamics vary from deal to deal. We do not force yours into a template.
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03 Responsive
We keep pace with the transaction
Sponsors need capital partners who can move with a deal. We prioritize efficient underwriting and clear communication throughout.
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04 Partner, not operator
You run the business
We back sponsors and management teams. We bring an investor’s perspective, transaction and operations experience to support when useful, without trying to run the company.
We underwrite the base case.
We prefer to underwrite a business based on historical performance with a minimal growth transition period. A strong base case doesn’t include significant business changes.
Growth, margin improvement, multiple expansion, and other value creation provide upside rather than being necessary to make the deal work.
What we look for in a sponsor.
We don’t believe there is one formula for a great independent sponsor. We back sponsors with relevant operating, investing, or transaction experience, meaningful alignment, great business fit, and a clear plan for creating value.
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Experienced
You fit the opportunity
We back sponsors with demonstrated leadership, operating, investing, industry, or transaction experience relevant to the business and the role they will play.
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Committed
Your own capital is in
Meaningful personal investment in the transaction and a clear commitment to the business beyond closing.
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Aligned
The structure works for everyone
Thoughtful sponsor economics and a structure that creates strong alignment among the sponsor, investors, and management team.
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Value-Add
You know how this gets better
A clear thesis for the investment and an ability to create value through operational improvement, growth, or strategic execution.
Where the sponsor is not running the business day to day, we will want to meet and vet the operator. The operator should hold meaningful equity and have real skin-in-the-game.
The business itself.
- History of operations and profitability
- Stable and recurring revenue
- Seller has a valid reason to exit, such as retirement
- Adjusted EBITDA of $1M–$5M
- Stable or growing industries
- Limited customer concentration
- Opportunities to create value and growth
- Industry agnostic: business services, specialty manufacturing, consumer and home services are common examples
We are not in your inbox every week.
We do not require a board seat, and we are not looking to sit in your management meeting. You run the business.
When our backgrounds are particularly relevant to the business, or when we step in as a lead investor, we can bring more of our experience and resources to the partnership. That can include helping work through transaction issues, providing strategic advice, serving on the board, and being a resource to the sponsor and management team before and after the acquisition.
Where we will pass.
Four filters that save everyone time. If your deal hits one of these, we are not the right capital, and we would rather you know now.
- Heavy customer concentration. A business that leans on one or two accounts for most of its revenue.
- Operating positions. We invest as a minority partner. We are not the operators.
- Outside the lower 48. US based only.
- No history of profit. Startups, turnarounds, and pre-profit businesses are outside what we underwrite.
Enough to start a conversation.
You don’t need to share confidential information or a full diligence package upfront. Send us what you’re comfortable sharing before an NDA, and we can quickly determine whether the opportunity looks like a potential fit.
- A brief overview of the business and industry
- Three years of approximate revenue and EBITDA
- Purchase price or valuation expectations
- High-level capital structure and equity need
- Your background and role after close
- Where you are in the process and expected timeline
Submit an opportunity.
Send us what you have. We will come back with a real answer, not a maybe.