jupiterlogo
la

Private Equity

Jupiter’s private equity activities are focused on acquiring controlling interests in excellent middle market companies with strong management at fair valuations.

Acquisition Criteria

Transaction Types

  • Management and Leveraged buyouts (MBO & LBO)
  • Recapitalizations
  • Corporate divestitures
  • Growth and expansion investments

Company & Business Characteristics

  • Established and defensible market position (unique or proprietary products, services or customers; or product, cost or other advantages)
  • Quality management in-place (we are prepared to augment, but not replace)
  • Established and profitable operating history with healthy operating margins and proven free cash flow generation
  • High returns on invested capital
  • Attractive growth prospects, both internal and external
  • Stable or growing markets with limited cyclicality
  • Limited risk of technological obsolescence
  • Simple, understandable businesses
  • Fair valuation
  • Headquartered in the U.S., with a preference to Western U.S.

Investment & Financial Characteristics

  • Total enterprise values ranging from $25 to $500 million
  • Controlling equity investments of $5 to $100 million
  • EBITDA of $5 million or greater
  • Company revenues of $25 million or greater

Operating Management Philosophy

  • We provide active leadership in strategic planning, capital allocation, acquisition and financing opportunities, all with the goal of maximizing enterprise value.
  • Day-to-day operating decisions are made by company management.
  • We believe in structuring meaningful equity ownership for senior management to create valuable incentives and align shareholder interests.

Industries

  • We are generalist investors, and industry segment is our least important criterion
  • Industries of interest and experience include:
  • Consumer Products and Services
  • Retail & Restaurants
  • Franchisors/Franchisees
  • Business Services
  • Basic Manufacturing
  • Value-Added Distribution
  • Healthcare Services
  • Energy, Transportation & Distribution
  • Investment areas typically avoided include:
  • High technology, biotechnology, startups
  • Competitive Advantages
  • Frequently we don’t require third party debt financing to close a transaction, which typically provides:
    • Speed
    • Certainty
    • Structural flexibility
  • Experienced investor across a diverse range of industries

 

We are actively seeking new investments and encourage executives, investment banking firms, business brokers, attorneys, accountants and business owners/managers to contact us with investment opportunities, ideas or questions. We have no committees and respond rapidly as to whether we’re interested in a particular opportunity, typically within a few days.