Our Strategy
747 Capital’s investment thesis is simple.
We believe that our focus on the small-cap market presents the greatest opportunity to capitalize on inefficiencies in the buyout space.
We provide investors with diversified portfolios of private equity funds, co-investments, and secondaries.
Inefficient
Market
There is a vast supply of high-quality businesses, which can be acquired at reasonable prices, outside of competitive auction processes.
Opportunity to
Add Value
With smaller business there are greater opportunities for experienced fund managers to create value, generate growth and enhance these businesses through applying their operational expertise.
Auction-Driven
Exits
Once enhanced, our underlying managers are able to sell their portfolio companies via efficient auction-driven transactions to larger private equity funds or strategic acquirers.
747 Capital seeks to meet with every small-cap buyout fund in its market.
The typical small-cap buyout fund targeted by 747 Capital will
have the following characteristics:
- $50 – 350 million in LP capital
- Geographic focus on the United States and/or Canada
- Experienced investment professionals with a relevant, verifiable track record together
- Growth, buyout, or turnaround investment style
- Focus on cash flow positive companies with $10 – 100 million in enterprise value upon entry
- Conservative use of leverage in transactions
- Track-record of control-oriented, or significant minority, investments
- Proven ability to consistently and meaningfully unlock value in portfolio companies
Ethical Investing
747 Capital maintains high ethical standards in its investment process and expects its partners to adhere to similarly high standards.
747 Capital has incorporated various environmental, social and governance (“ESG”) elements in its due diligence process and is pleased to be a signatory to the United Nations Principles for Responsible Investment “UNPRI”, incorporating the UNPRI principles into its investment process.