Investment Criteria

We have a significant degree of latitude in the types of direct investments in which we can act as the principal sponsor. However, our involvement and ability to attract the necessary capital is highly dependent on the presence of certain characteristics of the investment opportunity.

Business Profile: Texas and Southwest-based companies with a core business that has reached a normalized scale of operations, typically with revenues of at least $1 million. While some history of profitability is preferred, it is not necessarily a prerequisite to our involvement. However, we are not early stage investors.

Investment Size: Depending on the situation, we are seeking opportunities to invest between $1 million and $5 million in some form of debt and equity.

Industry Focus: Manufacturing, distribution and service companies, including those with a technology component.

Active Involvement: We are not passive investors. There has to be an active and ongoing advisory role for us, both during and after the investment transaction. This active involvement can take many forms, varying from interim management positions to an active advisory role as a member of the Board of Directors. (Our compensation for post-transaction advisory services is based on reasonable market rates for the types of services performed and are paid by the investee company.)

Control: While as investors we rely heavily on the strategic and operational expertise of the management team, we require a degree of organizational control in order to meaningfully support our active involvement.
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