SouthPointe Ventures, LLC
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Approach and Criteria
The investment objective of SouthPointe Ventures is long-term capital appreciation, with current income a secondary consideration. To implement our investment strategy, we employ a focused approach and a rigorous investment discipline. We are skilled in the disciplines necessary to understand a company and its future, including its market, competition, products and services, personnel, vendors, customers, regulatory issues, financial structure, and growth opportunities and threats. When available, we will bring on an associate from the industry in which a company we are investigating is in, to give us a real "insider's" look at the business and industry.

Our approach includes exploring, analyzing and promoting Portfolio Company business opportunities. We strive to help Portfolio Company managers in developing their business strategy, resolving technical issues and recruiting executives to complement the management team for the Portfolio Company. To help build value and monitor the Fund's investments, we will also participate on the Board of Directors of Portfolio Companies, and add additional value by assisting Portfolio Companies in managing and arranging working capital and expansion financing.

We want our Portfolio Company managers focused on running the business, so we strive to employ modest financial leverage. We attempt to achieve acceptable investment returns while avoiding the cash drains and balance sheet stress and distractions that too much debt creates.

Our primary investment criteria is as follows:

  • Southeastern United States geographic focus (except for add-ons to existing companies).
  • Revenue of $5 million to $50 million
  • Minimum EBITDA of $1 million (except for add-ons).
  • Partner with senior management willing to co-invest in the target company.
  • Established product or service in stable, growing market.
  • Acceptable financing from seller and/or third party lender.
  • High probability of reasonable growth each year.
  • Reasonably identifiable potential exit option(s).
  • No start-ups, turnarounds or real estate investments.
  • Majority control (or minority investor under special circumstances).
building the future, one company at a time.