Size
We generally look to acquire or invest in companies with $50 million to $1 billion in annual revenues that have a history of profitability. We will consider investing in smaller companies, particularly those with significant growth prospects, good management or growth strategies that can leverage Genstar’s internal capabilities and experience. While we typically seek to commit $25 to $300 million of equity per investment, we also have the ability to finance larger transactions through co-investments by our limited partners.
Deal Structure
Genstar Capital has experience in structuring investments in a variety of ways, including:
- Control-oriented leveraged buyouts of corporate divisions, privately held businesses or public companies
- Minority investments in privately held businesses or public companies
- Ownership restructurings/recapitalizations of privately held businesses
- Growth equity financing
- Partnerships with other strategic or financial buyers
- Going private transactions
While we are open to a variety of investment structures, we always seek to preserve a role for Genstar to actively work with management in growing the company and building value. The nature of our investment philosophy generally necessitates a high degree of influence over the company.
Industry and Company Characteristics
Genstar Capital strongly believes in creating value through partnering with strong management in an industry or situation with potential for significant growth. We typically like to invest in the following situations:
- A division or subsidiary whose business focus is not core to the parent company or that lacks the capital and resources to take advantage of growth opportunities
- A business that provides products and services to users in high-growth industries where the business faces minimal technology or new market risk
- Businesses that can benefit from Genstar’s access to capital and operational, strategic and transactional experience
- Challenging or underperforming situations where there is a need for a moderate degree of restructuring, investment or strategic redirection