Phoenix understands that no two businesses are the same, nor are any two transactions. We are open to a range of
investment types, including full acquisitions, partial acquisitions, recapitalizations and growth capital
investments. We evaluate the merits of each potential investment on its own basis, but we have a strong
preference for opportunities characterized by the following attributes.
Opportunity to add value
We believe in making investments where we can bring more than capital to the table. We derive personal
satisfaction from helping management teams achieve their goals, and we believe that we are most likely to have
successful outcomes when we can add true value through relevant know-how, networks, and/or other resources.
For sellers of businesses, we aim to help maintain and build, not just their wealth, but their legacy.
Attractive growth potential
We seek to invest in businesses that have the potential for very meaningful growth. They may or may not
already be on the rapid growth path, but they have a position in a key market segment that offers the clear
potential for significant upside. We generally view businesses in large and growing markets as having greater
long term potential, but we have experience expanding businesses from one market segment to another quite
Industries we (can) understand
We have direct experience and/or relevant knowledge and networks that lead us to favor certain industry types,
including software, education, human capital, professional services, consumer services / multi-unit,
manufacturing, and real estate/hospitality. We will readily admit when we feel we know little about an
industry and have little to offer (e.g. consumer packaged goods, biotech, retail, restaurant).
Stage / Transformation potential
We are focused on growth-stage and mature businesses where there is a clear product-market fit. For more
mature businesses, which may be on a slower growth trajectory, we look for opportunities to transform their
potential, by introducing new resources, such as talent, technology or partners. We do not make venture or
seed-stage investments, but current cash flow generation may or may not be a key determinant for us - it is
business dependent. We are also not seeking to acquire truly distressed businesses.
We define our target size range fairly broadly, but it is best described as small to middle market ($5m-$100m
enterprise value). We look for businesses that have sufficient size and scale to offer a path toward market
leadership (or at least to own a meaningful piece of a specific market) and enable us to invest in resources
(e.g. people, equipment, product development, marketing) that can drive long term value. On the other hand, we
like businesses that are small enough where we can help ‘move the needle’ by offering access to resources that
were previously unattainable.
Management excellence & culture
Because we believe business success is overwhelmingly driven by management excellence, we will only invest in
businesses that have exceptionally strong, well-aligned management upon our investment. This may include
original founders, previously in-place operators, and commonly a new leader who is joining at the
time of the investment. Along with management strength, management culture is extremely important to us. We
seek collaborative partners who are driven by the passion to succeed and deliver value to their
customers/clients, employees, investors and other direct stakeholders.