Growth Equity Investments

Jefferson Growth Equity Fund will expand on Jefferson Capital’s track record providing growth capital to small businesses, through equity securities with minority ownership positions.  These growth equity investments provide small businesses with a source of patient, flexible capital to help them achieve business objectives, including expansions, acquisitions, and refinancings. Jefferson Capital positions itself as a true, responsive partner so that when combined with a business’ inherent value, these investments not only enhance the reach of its equity base, but they make a business more attractive to traditional sources of capital, such as bank financing, lowering a company’s cost of capital, and expanding the types of capital sources available to the entrepreneur and small business owner.

Family and Founder-Owned Businesses

High quality family and founder-owned businesses in the Southeast are often overlooked and underpriced simply because of their location and inefficient market dynamics.

First Financial Partner

Management and ownership teams looking for their first true financial partner are typically at an inflection point, where the right kind of growth capital can be a catalyst for growth.

Southeastern Focused

Southeastern-based companies typically prefer Southeastern-based investors like Jefferson Capital.

Non-Control Equity

Many of these companies are looking for capital to grow without having to give up control of their businesses, but few investors are providing this type of financing solution.

Strong Balance Sheets

Companies aren’t leveraged to complete the transaction, thus reducing risk.  Equity investment strengthens the balance sheet by providing long term, patient capital.

Growth Equity Case Studies

CSA Holdings
CSA Group, a minority-owned architecture, and engineering firm was looking for a long-term, patient capital partner to help recapitalize its balance sheet and grow its business after recovering from the economic recession. Delinquent receivables from certain customers exacerbated liquidity problems and prevented CSA from pursuing growth opportunities.
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Atlas Signs Holdings, Inc.
Three brothers owned equal shares of Atlas, a Riviera Beach, FL industrial sign manufacturer.  A dispute among the brothers led to a need for capital to facilitate one brother’s exit from the business.  The company also wanted to refinance its balance sheet as a part of overall financing.   
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Aether DBS
Sagebrush is a Tulsa, OK-based manufacturer of engineered systems for the power and industrial markets. The company needed to access growth capital and refinance an existing seller note.
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Louisiana Pepper Exchange (LPE) is a veteran-owned, vertically integrated pepper company that specializes in providing pepper mash, pepper purees, and pepper powders to kitchens, co-packers, and sauce makers, worldwide. Based in New Orleans, LA, the company provides pepper mash to nearly 80% of the hot sauce market.
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INVESTMENT CRITERIA

Southeast Based Businesses

An underserved market, with high-quality family and founder-owned businesses that are overlooked and underpriced because of their location and inefficient market dynamics.

Lower Middle Market Companies

Revenues of $10 million to $100 million, proven ability to generate positive cash flow.

Overlooked Investment Opportunities

Companies with a need of $3 to $15 million in non-control equity capital.

Experienced, proven management

Strong, motivated management team with a superior record of performance and appropriate operating experiences, seeking a financial partner to grow.

Growth Business in Attractive Industry

Companies in medium to high-growth industries are primarily driven by market factors rather than technology.

Growth Equity Objectives

Properly structured growth equity investments position companies at an inflection point for accretive growth and actionable exit plans.

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