Approach
O’Brien Capital believes that success in the lower middle market is a function of both available capital and operating expertise. The O’Brien Capital team continues investing its resources and expertise well into the future. The combination of these resources and a strong management foundation is the key to the success of the firm going forward.
O’Brien Capital is not associated with a formally managed institutional equity fund. Capital employed is available from within the firm. Any guidelines or limitations for how funds are invested are the sole decision of the O’Brien Capital team.
O’Brien Capital is interested in long-term majority investments in privately held firms in need of growth capital and operating guidance. We look for firms that have a sustainable competitive advantage and strong scalable value drivers. We prefer to take a board-level advisory approach with an existing management team assisting with strategic planning, key decision-making, talent acquisition and development, and operational oversight. Our experience also includes management transitions to achieve growth or to accommodate an owner or manager who wishes to exit the company.
Financial Resources
O’Brien Capital is a direct private equity investment firm providing both capital and operating management expertise to lower middle market firms in the Midwest. O’Brien Capital prefers but does not require funding from commercial lenders or outside investment resources. Third-party approvals are not required to proceed with an investment opportunity.
Investment Criteria
- Established businesses in strong markets with branded, innovative products are preferred. O’Brien also has experience at working partners through periods of underperformance to capitalize on the firm’s potential.
- Preferred client size ranges between $500,000 and $3,000,000 in annual EBITDA.
- Value Drivers considered relevant to O’Brien’s investment decision:
- Unique and exploitable niche in a strong market
- Geographic expansion opportunities
- Scalable capacity for growth in systems and plant assets
- Innovative products with engineering content
- Proprietary manufacturing methodologies
- Broad customer concentration
- Manufacturing or commercial/industrial service firms with a robust mix of exploitable Value Drivers within a 250 mile radius of St. Louis, MO. Firms outside of this range that possess a superior level of potential growth opportunity are also considered.
Partnerships
O’Brien Capital partners with experienced managers who have a solid understanding of business and a track record of revenue growth and operating profitability. O’Brien Capital also looks to provide career growth opportunities within the firms.
We have relationships with industry resources allowing us to provide solutions to our investments: employment resources, talent assessment and development, banking relationships, law firms, acquisition abilities, supplier relationships, and international sales experience.
O’Brien Capital works closely with senior management in an advisory board capacity to set strategic goals and help make key business decisions. Management teams have the ability to operate autonomously to achieve the strategic plans.
