Investment Strategy

Overview:

Platte River invests in small and middle market operating companies, targeting equity investments generally between $5 million and $40 million and in companies with revenues generally between $10 million and $150 million. The firm pursues opportunities where it can provide meaningful value to a management team through the previous industry experience or other institutional expertise of its investment professionals.

Characteristics of Target Investments:

  • Industries in which the firm's principals have significant operating experience
  • Strong incumbent management team with a vision for the future of their company
  • Industries with attractive long-term growth trends
  • Critical supply relationships with customers
  • Potentially out-of-favor industries with improving prospects
  • Fragmented industries, which can benefit from consolidation
  • Sustainable barriers to entry

Primary Industries of Focus:

  • Aerospace manufacturing and services
  • Industrial products and services
  • Metals, chemicals and natural resources
  • Energy services and infrastructure

Investment Structures:

Platte River Equity typically looks to make control investments in management buyouts and recapitalization transactions. Platte River also pursues select minority equity investments in companies in need of capital for growth, to make add-on acquisitions or to assist in ownership transitions. Platte River's financing philosophy is to utilize modest leverage, preferring to generate attractive returns through earnings growth and expanding the valuation multiple through building larger, more valuable enterprises with improved operations.

Platte River Involvement with Management Partners:

Platte River Equity seeks to partner with strong incumbent management teams who have identified the need for an active, value-added partner. Platte River has historically assisted its management partners across a broad spectrum of strategic, operational and financing projects including:

  • Framing strategic direction
  • Developing operating and capital budgets
  • Evaluating and integrating complementary add-on acquisitions
  • Recruiting key managers
  • Executing on six sigma, LEAN or other operating performance improvement initiatives
  • Acting as interim managers on an as-needed basis