Approach
What We Do
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Investment Criteria
We invest our private family capital in businesses with high-quality management teams who have the desire to build the company and share meaningfully in its success. Our ideal investment has strong competitive positions, attractive growth opportunities, and a history of profitability and consistent, predictable cash flow.
Founded on a History of Family Business
We leverage our family capital to invest direct minority equity capital in leading middle-market businesses across the United States.
Our investments are led by high-quality sponsors who have a similar institutional quality approach to underwriting and investment analysis as Encore One.
Encore One’s sponsor partners value relationship and transparency with all stakeholders.
Our ideal new platform candidate has:
REVENUE
EBITDA
VALUE
CHECK SIZE
OWNERSHIP %
Desired Industry Partners
We’re seeking leading middle-market companies that are headquartered in the United States.
Industries of particular interest (in alphabetical order) include, but are not limited to:
- Financial and Professional Services
- General Business Services
- Healthcare Services
- Industrial & Commercial Services
- Outsourced Business Processes
- Specialized Manufacturing
- Value-added Distribution
We avoid commercial and industrial new construction risk. While every deal is unique, Encore One is related to the original source of family capital, a national construction and real estate development firm which is still owned today.
What to Expect
We are investing $15 to $20 Million annually.
We fund 3 to 5 deals annually.
Our check size is $2.5 Million to $10 Million per investment.
Our sweet spot is $4 Million to $7.5 Million.
Our goal is to always have 5 – 15 names in our active portfolio at any given time, redeploying capital long-term.
Our target IRR is +18% net of fees and +2.5x MOIC net of fees over the hold period.
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Transaction
While there is no one-size-fits-all for any transaction, each investment we support is grounded in trust with high-level agreement on valuation and structure including us of funds, underwriting needs, timing, security and fees.
Involvement
We are not involved in the day-to-day operations of our co-investment portfolio. Rather, we invest in partners, sponsors and companies with excellent management teams and allow for substantial autonomy. Our partners can draw upon our team and resources, and leverage our broad network of working relationships as needed. Our expectations for minority rights, reporting, governance, control, access and fees are customary.
Sponsor
Whether an independent sponsor, private equity fund, family office, club deal or management, the opportunities that are most attractive are ones with an angle. Some angles include favorable purchase price, operational expertise, industry experience, or skilled operating partner for example. Ever deal is unique. We also expect sponsor alignment and risk capital contribution from our partners or adequate alternatives.
Encore One is committed to the care of our companies’ team members. Post-closing, we will review employment agreements and compensation structures to best align management’s goals and rewards with ours. To facilitate a smooth transition, we typically mirror our companies’ pre-closing benefits programs.
Why Encore One?
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