As the landscape is more competitive and the market more efficient, value creation in private equity has become more challenging. Experience and longevity bring understanding and know-how. Today, more value comes from the hard work of identifying and executing successful growth strategies. With more than three decades of private equity investment experience spanning three economic cycles, Linsalata Capital Partners has distinguished itself in the lower middle market private equity space.
Our investment philosophy has remained consistent throughout our history: leverage the broad experience of our principals to identify attractive investment opportunities in targeted sectors, develop a strategy and vision for the business based on growth, and work with strong management teams to realize the full potential of each business in which we invest. Our typical investment horizon of five to seven years highlights the long term commitment we bring to our investments.
Linsalata Capital Partners brings proven investment experience spanning more than three decades and seven funds. Our investment professionals and philosophy have been honed throughout positive and negative economic cycles. We understand that value is rarely created in a straight line, and we have the insight and commitment for the long haul.
Our firm functions as a team, with each company benefiting from the collective skills and experience of our partners. Our principals bring a wide range of backgrounds in operations, management, finance, banking, consulting, and law in the lower middle market. Lessons learned from 50 private equity platform investments brings perspective to assist management teams. On average, our partners have been together for more than 15 years, providing stability and continuity to our investment approach.
We are growth investors. Our target size for a platform investment is $15 million to $50 million of equity in a company with $5 million to $20 million of EBITDA or free cash flow. Our ideal situation offers multiple opportunities to invest in growth as the foundation to our value creation principles. Growth affords scale advantages and valuation multiple expansion as an important source of equity appreciation. Internal growth initiatives include investments in innovation, capacity/technology, geographic expansion, and human capital, most specifically in sales, marketing and new product development.
Basis for Growth
In addition, Linsalata Capital Partners brings resources and experience to evaluate and execute strategic add-on acquisitions that can complement and accelerate the internal growth initiatives. We do not believe in financial engineering as the primary basis of a sustainable investment philosophy. Instead, we look for and foster growing enterprises where we can partner with management to achieve even greater success.
Private equity investing involves high-stakes trust, whether with sellers, intermediaries, investors, lenders or management teams. While it seems that nearly all of these relationships are documented through contracts and formal agreements, the real test is how one behaves. It starts early in a deal process with confidentiality, and extends into due diligence and documentation. It is also visible in our actions and in the way we manage fund agreement provisions, work through troubled situations and stick with an investment despite hard times.
Partner you can Trust
At Linsalata Capital Partners, our relationships are founded fundamentally on partnership. We strive for long-term relationships that stand the test of time – through good times and bad – to the mutual benefit of the partners. The majority of our investors and our core financing relationships have stayed with us through multiple funds and several key managers have chosen to work with us a second time in their career. Quite simply, Linsalata Capital Partners is a partner that you can trust to “do the right thing”.