The Ropart Asset Management Funds
Direct investing in small to midsize companies
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
- Proprietary network of relationships to assist the firm
- Sophisticated financial assistance, such as exploring funding options to support growth
- Equity
- Debt
- Advice on risk management
Portfolio
Our Team
Investment Professionals
Advisors
Outside Partners
Our Team
Investment Professionals
Todd A. Goergen Managing Partnertgoergen@ropart.com
Jonathan D. Shapiro, CFA, CPA Partnerjshapiro@ropart.com203-552-6659
Theodore W. Stofer Principal tstofer@ropart.com 203-552-6697
Fred M. DaSilva, CFP Controller fdasilva@ropart.com 203-552-6692
Advisors
Robert B. Goergen, Sr.
Advisor
Robert B. Goergen, Jr. Advisor
Ryan J. Blair Advisor
William R. Schlueter Advisor