What We Believe

Our investment partners deserve to know our core values.  We believe:

Not in Buying Companies, But Investing in People

We are less interested in adhering to strict investment criteria—type, size, or location of business—than we are in focusing on the character of the individuals involved.  We prefer to invest in businesses located in the Midwest, but will consider opportunities elsewhere with a like-minded management team.  We prefer to make an initial investment of $1 to $3 million, but will do larger or smaller deals with entrepreneurs we believe in.

In Aligning the Interests of Investors and Managers

It is fundamental to our philosophy that the most vital businesses are those in which everyone acts like an owner, with a vested interest in the company’s success.  We encourage key managers to invest financially in their companies along with us, and offer significant equity upside for managers who meet agreed-upon performance objectives.

In Playing Offensively

We believe that great companies play offense, not defense.  Whether a business is a long-held family firm in an ownership transition or a company being acquired by a new management team, our approach is entrepreneurial, and characterized by lean thinking about constant and continuous improvement.  Our “medium-term” view, with an expected hold period of 4 to 6 years in most cases, is long enough to allow value to be built but short enough to create a sense of urgency about getting it done.

In Doing Business by the Golden Rule

Our operating principles are consistent with those of the firms in which we seek to invest:  making business decisions based on what’s right, recruiting and retaining good people, and sharing the financial rewards of successful value-creation strategy with the managers who execute it.