Investment Criteria
Transaction Size and Scope
Blue Point typically invests equity capital in leading lower middle-market industrial, business services, consumer and value-added distribution companies with the following characteristics:
- $30 million to $300 million in revenue
- EBITDA greater than $7 million (no minimum for add-on acquisitions)
- Leaders in the markets they serve
- Strong fit with the Blue Point value-add resources and capabilities
As Blue Point seeks add-on acquisitions for our portfolio companies, the above financial metrics may not be relevant.
Investment Situations
Blue Point targets opportunities to make investments in situations that arise from:
- Recapitalizations of closely-held or family-owned companies that provide liquidity to the sellers while allowing opportunities for continued ownership
- Management-led buyouts of private companies
- Companies that need significant capital to fund internal growth or growth from add-on acquisitions
We are particularly focused on being the first outside equity capital in a growing business.
Our team comprises experienced and practical professionals. With years of experience in the lower middle-market, we understand and appreciate the importance to business owners of a transaction process that is transparent, efficient and timely — and conducted with the highest levels of integrity. We know that any transaction is a very important milestone in a company’s history, and we focus on investing with great respect and care.
Responsible Investing
Blue Point measures a successful investment on more than just the bottom line. We believe the value and overall future of our firm and portfolio companies hinges in part on our collective impact on the employees and communities in which we operate. We also recognize that there is a direct link between responsible business operations and strong financial performance.
Our ESG committee, which is made up of investment and operations professionals across our offices, is responsible for the implementation of our ESG policy and verification that such considerations are integrated throughout the Firm’s portfolio management lifecycle. The Blue Point investment professionals work alongside our management teams to seek to operate in a manner that respects our environmental, social and corporate governance values.
The following principles guide our investment priorities, practices and overall operations across the portfolio:
- Maintaining responsible business practices and compliance with global regulations, particularly amidst dynamic supply chain conditions: we believe the companies we invest in are to have a strong culture and track record of ethical practices and values, including complying with applicable human rights standards and labor laws, recognizing and protecting employees’ rights as well as providing safe work environments.
- Supporting diversity, equity and inclusion initiatives: we believe having different opinions, perspectives and backgrounds, especially within management teams and boards of directors, enrich the decision-making process. We support the efforts of our portfolio companies as they work towards enhancing equity across their workforce.