Investment Strategy

We prefer to invest in businesses located in the Midwestern U.S., particularly in the Upper Midwest. Our Minneapolis location affords us an excellent vantage point for investing in the dynamic and resilient economy of the Upper Midwest, which is home to many outstanding companies and relatively few well-established private equity firms. Approximately 50% of our investments have been in companies based in the five states of the Upper Midwest (Minnesota, Iowa, Wisconsin, North Dakota, and South Dakota), while another 30% of our investments have been in companies based in other parts of the broader Midwest. While location does matter to us, we will consider investment in a business based anywhere in the U.S. to the extent such business fits with our industry expertise and other investment criteria. As a general rule, the greater our depth of experience in a particular industry sector, the further we will venture from our home base. Also, we are generally less location-sensitive with respect to add-on acquisitions for existing portfolio companies. 

We are focused on businesses with earnings before interest, taxes, depreciation, and amortization ( EBITDA) generally up to $10 million. Prospective acquisitions will be considered as new "platform" companies or as add-on acquisitions for existing portfolio company investments.

Over our 20+ year history, we have invested across a wide spectrum of industry segments. Historically, approximately half of our investments have been in industrial and business service segments such as precision components, industrial equipment, and logistics services. The other half have been in consumer-driven industry segments such as food, retail, and restaurants.

We have a history of successful investments in a variety of business areas and is now particularly interested in investments in the industrial and business service sectors, and in food, transportation, distribution and agribusiness enterprises that can benefit from the experience of our principals.

We have a long track record of structuring acquisitions involving a broad range of transaction types and in a wide variety of economic and financial market settings.  We have a demonstrated track record in successfully acquiring companies from family ownership, from larger corporate parents, from other financial sponsors, from public shareholders via “going private” transactions, as well as in making control equity investments via other transactional structures such as leveraged recapitalizations.  We also have experience structuring transactions around environmental and other contingent liabilities, working through corporate “carve-out” and family transition issues, and obtaining suitable acquisition financing during times of reduced credit availability.