Over the past 27 years, we have heard from investment banking/intermediary friends who feel a profound need in the market for a seasoned private equity partner who is willing to invest in minority positions in smaller companies while bringing the kind of meaningful operating assistance that Mangrove’s four-man internal operating team brings to our majority investing.
Accordingly, Mangrove will now invest in both majority and minority stakes in mature, profitable companies with meaningful competitive advantages and stable cashflow.
Minority candidates should feature particularly strong leadership. We believe that there are highly sophisticated owner/operators whose company and industry have more opportunity than most, and that these owner/operators are therefore unwilling to sell a majority stake.
These are the opportunities we seek.
Common goals of such owner/operators include:
- To buy out certain shareholders
- To support investment in growth, both organic and through add-on acquisitions, capital projects, increased investment in sales and marketing initiatives, etc.
- To support geographic expansion or product/service offering
- To diversify personal net worth by taking some chips off the table
We are excited to fill the void expressed by our deal sources by becoming an operationally intensive lower middle market minority investor as well.
Candidates should meet the criteria of Mangrove’s majority stake investment candidates.
We welcome your feedback and questions.