Our Wheelhouse
Traverse Pointe Partners makes control investments in lower middle-market companies headquartered in North America.
Targeted Sectors
Traverse Pointe Partners focuses on control investments in the lower end of the middle market.
We leverage the experience of our investment team, operating partners and advisory board to participate in opportunities where we can partner with management and enhance long-term value. We tend to favor situations where we have a unique angle and can help bring a business in transition to the next level. Consistent with this mindset, our team has extensive experience investing in and / or operating companies in the following industries:
- Business Services
- Manufacturing & Industrials
- Consumer Products
- Value Added Distribution
- Healthcare
Financial Criteria
We invest in businesses with strong fundamentals at the lower end of the middle market and aim to increase operational efficiencies, instill a robust set of professional management practices, and work collaboratively with management to create more opportunities to organically and acquisitively grow their businesses.
We look to capitalize on our network and industry expertise to add value and help a business reach its full potential. We prefer situations where current ownership or management invest alongside Traverse Pointe Partners.
We are receptive to challenging and special situations if we can determine a viable path to profitability. In these situations, we prefer the investment target to have a robust revenue and/or asset base.
Below are several general financial criteria for Traverse Pointe Partners investments:
- Revenues typically greater than $10 million
- Up to $7 million of EBITDA
- Profitability not required for turnaround/special situations
Transaction Types
At Traverse Pointe Partners our team has experience executing on a vast array of transaction types. We look at companies in a variety of scenarios, including but not limited to:
Generational transitions
Many family-owned businesses are approaching a transition stage where the founder or owner/operator is ready to take a step back. The existing management team may not necessarily have the wherewithal to acquire the business themselves. Our capital can help facilitate a liquidity event for existing ownership while providing continuity for the company and its next generation of leaders.
Industry consolidations
We review consolidation acquisitions to identify benefits that can be captured across two or more companies within a specific industry vertical. We look to broaden the revenue streams, capitalize on potential cost efficiencies, and build critical mass within the investment platform to give a business a competitive edge that was previously unavailable without a combination strategy.
Non-core divestitures
Sometimes corporations decide certain assets, divisions or subsidiaries are no longer core to their value proposition. We believe these divestitures can present a unique opportunity to create a standalone platform that re-instills autonomy and resets the strategic outlook of a business.
Recapitalizations
It’s not uncommon for an owner/operator to have a significant amount of their net worth tied up in their business. These owners can gain liquidity and diversification by partnering with us in a transaction, while still keeping a meaningful stake in their business.