CapGen seeks to invest in high quality medium-sized financial services related businesses. These may include banks, finance and leasing companies. Potential portfolio companies may be privately owned, publicly held or divisions of large institutions subject to divesture.
We generally focus our investments on companies which already have demonstrated the viability of their businesses. Therefore, CapGen specializes in providing long-term capital for recapitalizations, management led buyouts, and expansion capital for growth opportunities.
The form of our investment is determined on a case-by-case basis. We can invest in subordinated debt, purchase preferred stock and common equity, either directly or through warrants. We expect most of our investments to be common stock given the return requirements.
We generally prefer companies with assets between $500 million and $20 billion and meet the following general criteria:
- Strong operating management with proven skills in managing people and resources effectively
- Market leadership or secure market niche based on proprietary production process or product in growing markets.
Our investments generally involve the following characteristics:
- Amount invested per transaction: $15 million - 100 million
- Multi-investor participation
- Key management to hold equity stakes
- Control position, including Board of Director representation.