Investment Approach

Partnership with Management

The core of our investment philosophy is to invest in partnership with management.  Consistent with this approach, we back strong management teams that invest with us in their businesses.  We also design compensation programs that align the interests of management teams with the long-term strategies of their companies.  Moreover, we at Freeman Spogli do not operate businesses.  Instead, we support management from a strategic perspective in the growth of their businesses.

Investment Criteria

Industry: 

  • Established companies in the consumer and distribution industries 
  • Includes retail, restaurants, direct marketing, e-commerce, consumer products, retail services and wholesale, business-to-business and specialty distribution
     

Transaction Types:

  • Management buyouts, leveraged recapitalizations, corporate carve-outs and equity investments
     

Company Characteristics:

  • Strong management teams
  • Defensible market positions
  • Platform for organic and acquisition growth
  • Solid margins and free cash flow
     

Geography:

  • North America
     

Company/Transaction Size:

  • Companies with EBITDA of $10 million to $75 million
  • Equity investments of $50 million to $150 million
  • Transactions of $100 million to $750 million in total size

 

Value Building

We are actively involved in working with management teams to develop and implement value-building strategies for our portfolio companies.  These initiatives often include strategic roadmaps, operating enhancements, management team additions and complementary acquisitions.  Through these programs, we provide our management teams with the support and capital to build larger, more competitive and more profitable businesses.