Orchard Holdings Group makes private investments in established, well-managed and consistently profitable businesses. Our strategy is to build a diversified portfolio of companies that have exceptional potential for long-term value creation. We typically invest $10 million to $40 million of capital per transaction in businesses with $25 million to $250 million in revenue, but we have the ability to selectively pursue transactions that are substantially larger. We are particularly well suited partners for, and are attracted to, the following types of transactions:

TRANSACTIONS

Buyouts—providing capital to back management teams to acquire private companies and non-core divisions of larger companies.

Recapitalizations—aiding business owners to achieve significant liquidity while retaining a stake in the business, or to facilitate the inter-generational transfer of ownership in a family business with the strategic and capital resources of a strong financial partner.

Buy-and-builds—helping companies in fragmented industries to attain a stronger competitive position through strategic acquisitions.

Later stage growth capital—providing equity capital to businesses with a solid market opportunity and a proven product or service to help them achieve their full potential.

Special Situations—due to the unique long-term, flexible nature of our capital, we have the ability to enter into creative transaction structures and special situations, including:

  • Structured minority investments
  • Mezzanine investments
  • Influential positions in public companies
  • Distressed debt investments

INVESTMENT CHARACTERISTICS

Management Team Characteristics

  • Experienced/proven
  • Committed
  • Ethical
  • Communicative
  • Energized by long-term, not short-term, wealth creation
  • Economically aligned with shareholders

Company Characteristics

  • Proven business model
  • Sound margin structure
  • Sustainable and defendable source of competitive differentiation
  • Strong return on invested capital
  • Opportunities for reinvestment of free cash flow
  • Ability to add value operationally or via acquisition/growth
  • Established infrastructure
  • Catalyst for value creation

Industry Characteristics

  • Structurally sound
  • Pricing and margin stability
  • Ability to consolidate market share through strategic growth or acquisitions

Because of our flexible capital and long-term focus, we are able to consider transactions that have extended payoff cycles, lumpy cash flow and/or limited exit alternatives.

We generally avoid opportunities in which we perceive there to be exogenous, event, technology or business model risk.