Ropart Asset Management Funds

The Ropart Asset Management Funds

Direct investing in small to midsize companies

The Ropart Asset Management Funds (“RAM”) is a private equity firm that invests directly in small to midsize companies.

The firm pursues a flexible strategy, investing throughout the capital structure and in multiple industries, including Business Services, Healthcare Services, Consumer Products, Financial Services, and Software/Technology.

The current portfolio is composed of platform/control investments, mezzanine lending, and growth capital investments. RAM also makes opportunistic investments in distressed or special situations (e.g., secondary market purchases of private equity fund LP interests).

RAM uses its proprietary network to source strategic alliances, M&A transactions, and raise additional capital. Post closing, Ropart works actively alongside management to help build long-term company value.

Furthermore, RAM uses its extensive relationships among senior executives and operating-level managers to provide business and technical expertise, management talent, and industry specific investment analysis to portfolio companies. RAM regularly relies on these executives to serve on our portfolio companies’ Boards of Directors.

Investment Criteria

Investment Size

RAM generally seeks to invest $3-15 million of equity in deals with transaction value ranges of $10-100 million, but has and will lead or participate in deals requiring as much as $35 million in equity with values up to $200 million.

Investment Characteristics

Platform/Control:

Between $10-150 million in sales
Competitive valuation multiples
Strong platform businesses with opportunity for value-added change at the time of investment, such as:
- Geographic expansion (organically or through bolt-on acquisitions)
- Product line extension
- Management succession
Recurring revenue models
Management alignment through equity participation
Proprietary deals

Mezzanine:

Attractive leverage and coverage ratios
Strong product or market position
Profitable and predictable financial performance
Strong track record of operating management
Strong financial sponsor (equity holder)

Growth Capital:

Significant or rapidly growing market
Attractive competitive positioning in the industry
Scalable business model
Experienced operating management with relevant industry experience

Required Terms

Platform/control:

Controlling equity position (51% or more), either alone or with partner(s)
Ability to source value-added board members and management

Mezzanine:

Blend of current (cash) / future (PIK, warrants) income streams
A term of five years or less

Growth capital:

At least one seat on the Board of Directors
A minimum of one other value added co-investor

Investment Characteristics

RAM seeks to create value for its portfolio companies by providing the following services and expertise:

Board-level guidance to help develop and execute corporate strategy for sustainable, profitable growth

Prior industry experience primarily in investment banking, business services, health care, consumer products, retail, direct marketing, and software

Best practice advice on operations
- Internal controls
- Financial reporting, operating metrics, and benchmarking
- Recurring revenue models
- Corporate governance
- Human resources
- Incentive programs
- Outsourcing opportunities
- Logistics and supply chain

Ongoing support for C-level staff development and in recruitment of executive personnel

Able to fill in interim management positions when needed

Corporate development assistance when necessary
- Valuation
- Analytical support for projects
- Modeling
- Negotiations
- Appropriate capital structure/financing
- Optimizing value for shareholders with an exit opportunity when the time is appropriate