Attributes

The Fund targets investments in rapidly growing manufacturing and technology companies with revenue typically in excess of $1.0 million and equity valuations typically less than $25 million. Each investment is selected after a critical review of a myriad of factors, including the strength and execution skills of management, the size and relative dominance of the company within its industry and the markets it serves, distinct competitive advantages and opportunities for accelerated growth, and strength of management information systems and financial controls. The Fund aggressively pursues those best-of-breed companies that are executing on their business plan and possess a well-thought-out path to profitability. The Fund primarily targets investments in a diversified portfolio of companies whose industries may broadly include:

Agribusiness Energy and Environmental Technology
Basic Manufacturing Marketing and Distribution
Biotechnology and the Life Sciences Materials Technology
Computer Hardware and Software Networking Systems
Consumer and Business Services Printing
Control Systems and Industrial Automation Powdered Metals
e-Business Infrastructure and Interactive Media Telecommunication Technology
Education Products and Services Tool & Die

Other – where compelling market opportunities exist, companies within basic industries that possess a proprietary technological niche or uniquely exploit proven technology to gain a competitive advantage.

The Fund's investment focus reflects the fact that the Principals have been extensively involved in either financings for or acting as consultants to The Fund's investment focus reflects the fact that the Principals have been extensively involved in either financings for or acting as consultatns to companies in these industries throughout their careers. The Fund may occasionally invest in other types of innovative product or service companies with high growth potential. In addition, the Fund may consider investments in companies in other industries in situations in which (a) Fund Advisor members possess the industry expertise necessary to effectively evaluate the potential of such investment candidates, or (b) a co-investment opportunity is presented to the Fund by another fund or other qualified investor with expertise in the industry in which the investment candidate operates. Under SBA regulations, the Fund will be restricted from investing in companies whose principal business is re-lending or re-investing (e.g., investment firms, leasing companies, banks); many kinds of real estate projects; single purpose projects; offshore businesses; passive businesses; and businesses using 50% or more of the funds to buy goods or services from an associated supplier.

In addition, regardless of the industries in which they operate, the Fund expects that portfolio companies will share one or more of the following characteristics:

  • Management teams with skill, experience, and depth either currently in place, or capable of readily achieving these standards with selected additions;
  • Predictable and growing revenue and earnings or excellent revenue and earnings potential;
  • Successful products and/or services, with strong market positions or potential;
  • Proprietary products or services;
  • Proven technologies or market niche(s) that form the basis for market leadership;
  • Solid and growing bases of satisfied customers;
  • Strong or improving performance, in terms of revenues, profits, and cash flow;
  • Unexploited product development, market penetration, and/or profit improvement opportunities tied to defined capital needs currently unmet by other funding sources;
  • A business plan supporting the ability to increase company value through revenue growth and/or operating improvements generating higher gross margins and net profitability;
  • An identifiable two- to five-year investment exit potential.