Moelis Capital Partners ("MCP") focuses on middle market buyout and growth equity investments. We use our experience and resources to act as a catalyst in helping companies achieve their strategic goals while creating significant equity value. While we typically commit between $25 and $75 million to each investment as the lead or co-lead investor, we maintain the flexibility to pursue other transaction structures and sizes.
We apply a thematic investment approach that targets specific growth industries where our team has deep expertise and investing experience including business services, consumer and retail, financial services, healthcare services, industrial and telecom. In addition to our investment team, MCP has access to supplemental domain knowledge and operating resources through our extensive network of industry executives, consultants and other professionals as well as through the Moelis & Company network.
We believe in a constructive partnership with strong management teams that provides appropriate support and incentives for value creation. We tailor our level of involvement to suit management's needs and use the successful approaches our partners have developed over decades of building and growing successful companies. Rather than get involved in the day-to-day operations, we let management do what they do best. However, we provide active board oversight, strategic guidance and financial discipline to enhance the value creation opportunity of each company. We also leverage our network of expert industry and operating resources. Moreover, we believe in aligning financial incentives with our management teams and always provide for an appropriate management incentive plan.
Our affiliation with Moelis & Company and its extensive advisory business provides access to global resources unavailable to many other private equity firms. These resources include industry-focused investment bankers, in-house capital markets expertise and a wealth of executives, operators and potential board members.
This vast network of resources, combined with our deep industry expertise and flexible investment approach, results in more efficient screening and review of opportunities, the ability to rapidly complete investments and the creation of value.
Our approach to investing is grounded in the following fundamental principles:
- Control or lead/co-lead investments
- Fast, focused due diligence and decision making
- Constructive partnership with management teams
- Transparent and open communication
- Highly flexible and creative approach to transaction structuring
- Willingly work with alternative partners including fundless sponsors
MCP targets investments in leading middle market companies with the following characteristics:
- EBITDA between $5 million and $40 million
- Strong organic growth within the company and sector
- Leading player in a growing market segment within a defensible niche
- Attractive return on assets
- Potential for build-up opportunities in fragmented industries
- Emphasis on North America with the capability to invest globally
Although our priority is leveraged buyouts and growth equity investments, we are flexible regarding transaction type and capital structure. Our team also has significant experience investing alongside other investors such as family-owned businesses and fundless sponsors. Transaction types in which we have experience include:
- Leveraged buyouts
- Management buyouts
- Growth equity
- Acquisition capital
- Recapitalizations
- Structured equity
While targeting a commitment of $25 to $75 million per transaction, we have the ability to invest over $75 million in exceptional situations.
We follow a thematic approach to investing and focus on industry sub-sectors in which we maintain extensive experience including:
- Business Services - information and marketing services; technology-enabled services (SaaS, BPO, IT); diversified industrial services; human capital management; asset light logistics
- Consumer - specialty food and beverage; food, drug and convenience retail; specialty retail; health and wellness; household and personal products; consumer services
- Financial Services - mortgage banking; FIG technology providers; property and casualty insurance; specialty finance; community banking; asset management
- Healthcare Services - physician services; payor support services; specialty pharmacies and home infusion; behavioral health; education and training; revenue cycle management
- Industrial - aerospace and defense; manufacturing; asset-light logistics; non-residential building products; rail capital equipment
- Telecom - data center opportunities; co-location; cloud computing; managed services providers; mobile telecom operators; wireless tower operators