Private Equity
Investment Criteria
The Private Equity arm of Sinclair Adamson seeks to raise funds which are invested into portfolio businesses. The characteristics we seek in an investment opportunity differ according to its business activities, stage of development, industry and geography. However, all investment opportunities that we choose to execute must have the following characteristics.
Strategy
- A clearly identifiable plan of action as to how investment can expand business.
- Opportunity clearly solves a problem for the end customer.
- A scalable business which can be introduced across new regions.
- Has a clearly identified exit path which can be translated across operational programmes.
Finance
- Significant growth prospect through rapid cash flow generation.
- Aims to return a multiple of 2 to 3x on invested capital.
- Minimum IRR of 25%.
- The fund can exit within 3 to 5 years with a minimum Enterprise Value of £10m
- Has a clearly identified exit path preferably a trade sale.
Marketing
The business opportunity must operate:
- In a fragmented market with no clear market leader.
- Customer expectations are low.
- Differentiation can be achieved through innovation and branding.
People
Our Business Partners must:
- Be willing to clearly demonstrate that they are passionate and willing to improve, grow and expand their knowledge base by working collaboratively and stepping out of their comfort zone.
- Prepared to operate in a culture which promotes change and innovation;