Investment Criteria

What Does AdCap Growth Partners Generally Look for in Companies?

The AdCap Difference

At AdCap, your success is our success. We are focused on diversification and identifying non-cyclical businesses with robust competitive differentiation.

During underwriting, we work to develop a deep understanding of a borrower’s business, their underlying markets, and their competitive position. We believe the ability to maintain competitive positioning and margins is key, thus we seek to identify businesses that have historically demonstrated pricing power and that have been capable of passing through or absorbing fluctuations in underlying costs.

Using an approach that begins with extensive research, our team identifies investments that we believe enable us to build mutually beneficial, collaborative partnerships in sectors with favorable conditions for growth.

Attributes

Revenue

$10M-75M

Diversified customer base and revenue stream, proven business model with recurring or predictable cash flows

EBITDA

$5M-25M

U.S. based borrowers, appropriate capital structure for the company’s risk profile, 30%+ Gross Margins and 15%+ EBITDA Margins

Enterprise value up to

$350 Million

Exceptional management team with meaningful equity in the business

Ability to endure business cycles, defensible position in the market

Multiple ways to exit with potential for valuation multiple arbitrage

Initial Investment Size

$5M-20M

targeted hold

Strong collateral base and enterprise value coverage, sufficient resources to service debt, clear path to repayment and sustainable leverage, sponsors with sector knowledge and established relationships

Industries We Target

Our highly experienced team works across a broad range of industries. We take a generalist approach, with sector specific experience in a number of areas:

Aerospace & Defense

Healthcare

Staffing

Machinery

Chemical

Industrials

Technology

Automotive

Transports

Transaction Types

We partner with management teams as well as both funded and independent sponsors in building flexible capital structures to support a wide range of transactions:

Growth Financing

Mergers & Acquisitions

Independent Sponsor Transactions

Add-on Acquisitions

Management Backed LBOs

Recap/Refi

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Contact Us

We’re here to listen! We currently accept inquiries for investment opportunities from focused, growth minded independent businesses.

Contact Our Team