Crosse+Partners is a private equity fund created to invest in and provide growth resources for middle market companies primarily based in California. We will also look at attractive opportunities in Nevada, Arizona and other Western territories. We focus on established and profitable companies operating in the manufacturing, distribution and service sectors. Investments up to $10 million are considered and are typically made on a controlling basis with our captive equity source. The common characteristics of companies that Crosse+Partners will consider include the following: a definable, understandable and scalable business model; well-developed and growing markets; proven products/processes; unique competitive advantages and opportunities to grow; a record of consistent, predictable cash flow up to $2.5 million; operating margins in excess of 10%; and viable exit strategies.

From the very beginning of our investment process, we take the time to learn about the business with a thorough evaluation and analysis of each acquisition opportunity. We aim to develop mutually beneficial relationships with prospective sellers as well as their companies' employees, management, and customers. It is our objective to limit disruptions to a companies’ day-to-day affairs before, during, and after the transaction. We come from entrepreneurial families ourselves and are especially sensitive to the unique set of issues faced by privately-held, family-owned companies. As a result, Crosse+Partners takes special care to consider estate planning and tax issues, confidentiality, family members in the company, and a host of other delicate topics that are unique to each business.

We believe the best path to long-term value creation for all stakeholders is through the development of a strong management team and the execution of a well-conceived business plan. As a result, Crosse+Partners seeks to actively lead portfolio investments through a development process that augments and strengthens management, increases growth rates, improves operating margins, enhances business systems, and broadens product/service offerings. We maintain an active and hands-on relationship, but not day-to-day role, with our management partners. Similarly, in structuring a transaction, we expect management to hold a meaningful equity stake in the company as a way of aligning their financial incentives with ours.

The end result will be a larger and more stable organization with a proven, equity-oriented management; a developed operating infrastructure; improved cash flow and financial position; and brighter outlook for the future.