Providing long-term capital for private companies in transition
NewCastle Partners LLC is a Greenwich, Connecticut based private investment firm that invests in and acquires successful, middle market operating companies in partnership with management.
The principals of NewCastle Partners have invested in over forty corporate transactions during the past thirty years. As a result, our vast business experience over a broad array of industries allows us to provide tangible value to create a unique partnership with owners and managers in the creation of significant corporate value.
Since 1985, the principals of NewCastle have specialized in structuring transactions that provide liquidity to business owners while enabling them to retain significant residual ownership, operating control, and corporate autonomy. Realizing that every business is unique and the objectives of its owners and managers different, we have the capability to custom tailor a transaction to satisfy those individuals’ economic objectives as well as any life transitioning or other personal requirements.
We invest our own capital in conjunction with our partners and are not asset managers being paid by institutional third parties to invest capital. As such, we have a long-term investment horizon and concentrate our activities on a relatively smaller, select group of operating companies. We focus our energies on a few rather than a broad, diverse portfolio achieved through frenzied deal making. Our energies are focused as long-term investors and business builders rather than short-term traders.
The NewCastle principals have gained tremendous operational experience through their involvement over the past 30 years with various companies in a broad array of industries. We provide operational, financial, administrative, strategic and legal support to each our portfolio companies on a weekly basis. We also rely on a cadre of advisors, former executive partners, industry experts and professionals to assist each of our investments on an ongoing basis.
We look for family-owned businesses headquartered in the United States. We prefer companies with attractive market positions, consistent cash flows, high quality management and favorable growth prospects.
We typically invest in companies and structure our investments within the following parameters:
• Enterprise values between $10 and $40 million.
• Annual revenue between $10 and $50 million.
• EBITDA greater than $2 million.
• Operations in the United States.
• Primarily buy-outs and recapitalizations.
We focus our investment efforts primarily on businesses that manufacture and/or distribute tangible products in the following industries:
• Niche manufacturing.
• Specialty distribution.
We generally look for the following attributes:
• Historical profitability and growth.
• Revenue and earnings growth potential.
• Strong and defensible market share with sustainable competitive advantage (proven technology, brand name, proprietary concepts or manufacturing advantages).
• Diverse and stable customer base.
• Continuity of executive management.
• Management interest in maintaining significant equity ownership and day-to-day control of the business.
Private business owners ultimately must address the issue regarding diversification of their corporate investment, despite the excitement about the long-term prospects of the business and their desire to maintain a continuing role in its success. Through a recapitalization, we provide owners with substantial liquidity while allowing them, their family/heirs or executives to retain significant equity ownership and day-to-day operating control. Flexible transactions can be structured to satisfy both the financial and personal objectives of the shareholders. These recapitalization transactions are frequently utilized to:
• Provide shareholders with partial or full financial liquidity.
• Permit for the diversification of wealth; provides resolution to the problem of “all your eggs in one basket.”
• Protect family economic downside through economic diversification.
• Provide for the transfer of ownership from one generation to another or to a management group.
• Resolve complex estate planning issues.
• Resolve diverging objectives of shareholders, frequently the result of age differences, health considerations, and ongoing personal commitments of those shareholders to the business.
• Provide value added partners with vast business experience to the board of directors.
We will fully acquire established family-owned businesses and provide the needed experience and capital to facilitate the acquisition of smaller, non-strategic divisions or product lines from larger corporations. In most cases, these orphaned divisions have no strategic value to their parent corporation and need better stewardship. As independent operations, with senior executives as owners rather than managers, these companies have the opportunity to flourish outside of a bureaucratic environment.
We will invest in growth-oriented companies seeking additional capital for internal growth, expansion or product line acquisitions. In addition, we seek investments in corporate platforms or “build ups” with experienced executives intent on making complementary acquisitions in consolidating industries.
We have invested in dozens of successful companies specializing in niche manufacturing and specialty distribution. Please see below for details on current and historical investments.
NewCastle Partners LLC
140 Greenwich Avenue
Greenwich, CT 06830
Phone:
www.newcastle-partners.com
We welcome inquiries about our investment activities from business owners, investment bankers, business brokers and other intermediaries, and executives or managers. NewCastle Partners is accustomed to paying transaction-based finder’s referral fees in cash and in equity when appropriate.
