Crosse+Partners is a private equity fund created to acquire and operate small to middle market companies primarily based in California, however, we will also look at attractive opportunities in Nevada, Arizona and in 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 made on a controlling basis with our captive equity source.  The common characteristics of companies that Crosse+Partners will consider include 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 investment opportunity.  We aim to develop mutually beneficial relationships with prospective sellers as well as their companies' employees, management, and customers and limit disruptions to the business’ day-to-day affairs before, during, and after the transaction.  In coming from entrepreneurial families ourselves, we are especially sensitive to the unique set of issues presented by privately-held, family-owned companies and take special care to consider estate planning and tax issues, confidentiality, family members in the business, etc.

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 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.