Our Investments
As every business is unique, our investments are tailored to the particular needs and circumstances of each situation. Our approach is flexible to ensure that our companies have the management and resources necessary for each phase of their growth. Our objective is to create a relationship and financial environment in which each company can optimize its development and value.
We are Business Partners
We are long-term investors, first and foremost – not operational managers. We limit our involvement in day-to-day operations, and act as a strategic resource providing financial, operational and other expertise to the management teams of our companies. We seek out management and investment partners who can add value to our companies through industry knowledge, operating experience or other specific expertise. We have a reputation as a value-enhancing business partner, basing our relationships on trust and respect for each participant’s expertise.
The Stern Partners team is comprised of experienced business professionals with diverse and complementary skills, allowing us to bring valuable perspectives to many facets of our companies’ operations and development. As warranted, our team works closely with the management teams of the companies underlying our investments.
Our Investment Criteria
We are interested in investment opportunities that can provide the basis for long-term growth and value creation, and are generally prepared to be a lead or controlling investor in such businesses.
Our primary interest is in mid-market and larger companies, although there are also several smaller companies in our portfolio of investments. We do not restrict our investments to any specific industry, geographic area or development stage. Our team has experience in a broad range of industries, including manufacturing, distribution, retailing, consumer products, technology and infrastructure service sectors.
Companies that best suit our investment criteria have many of the following attributes: a proven and committed management team that demonstrates a strong entrepreneurial spirit, operational experience and a high level of personal commitment; a proprietary product or process; a strong market, product or geographic niche with barriers to entry; and a strong relative cost position or influence over costs. We will also consider companies that have many of these characteristics, but require particular attention in order to address transitional, operational or strategic challenges.
We primarily seek out the following types of investment opportunities:
- Sale or Recapitalization by Owners-Founders
- Divestment and Spin-Offs
- Capital Injection for Expansion
- Turn-Around Situations
- Going-Private Transactions
- Management Buy-Out/Buy-In
The form of our invested capital is flexible and depends on the particular circumstances. We have a proven track record of equity, convertible securities, debentures, mezzanine and other investments. Our preference is for deal structures that provide substantial capital protection in addition to preserving upside potential.