Key Investment Themes

Business & Tech Enabled Industrial Services

 

Digital transformation, driven by smart technology and connected devices, is increasing productivity and connectivity leading to new services and better business results.

Sub-Industries: Vendor management solutions, B2B information services, infrastructure maintenance services, telematic services, asset management services, and B2B eCommerce solutions.

Testing, Inspection, & Certification Services

 

The acceleration of global standards and regulations, the proliferation of new products, the growing need for supply chain integrity, and increasing expectations for consumer safety and quality are driving the need for TIC services.

Sub-Industries: Analytical laboratory testing, field device calibration services, metrology services, EH&S compliance services, and non-destructive testing services.

Digital Training, Education, & Human Capital Solutions

 

The labor shortage and skills gap in manufacturing has been a persistent issue creating an increased need for continuing education and the workforce upskilling.

Sub-Industries: Training service providers, workforce management solutions, workforce health solutions, and employee certification and credentialing.

Investment Criteria

 

Financial

  • Recurring and contractual revenue streams

  • $5 - $30 million of annual revenue

  • $1.5 - $6 million of annual EBITDA

  • Low cyclicality

  • Low capex requirements

  • Cash flow positive for three years

Business

  • Private and concentrated ownership

  • Motivated sellers

  • Strong middle management

  • Low customer concentration and churn

  • High operating leverage

Industry

  • High organic growth

  • Large, fragmented market

  • Non-commoditized service

  • High competitive barriers