Simon Group Holdings Founder and Chairman Sam Simon began his family office and founded Soaring Pine Capital (SPC), which initially included five other families. It has since grown to a network of successful entrepreneurial families, whose partners bring a wealth of experience and contacts to every deal and provides the Growth Fund team with a demonstrable advantage, thus achieving superior returns.
Our operationally-focused private equity funds are used to invest in lower middle-market companies, which pursue a value-add investment and growth strategy that combines the talents of a highly experienced investment team with the proven daily performance excellence of leading operating partners. In part due to the sheer number of opportunities, but also due to the size of the companies involved, transactions in the lower middle market are typically under-represented. As a result, more opportunities exist to buy direct or through an intermediary, where relationships play an even stronger role in deal sourcing. Our capital is patient and allows for us to help entrepreneurs build the proper team to scale their businesses. For existing management teams, we provide capital to enable rapid growth.
Most private equity companies operate on financial metrics. We help companies grow through strategic guidance and operational experience. We’re continually making connections and deals as a result of our proprietary deal flow network, which is based on our deep industry contacts, built over 40 years. We invest in people with entrepreneurial drive, passion and a vision to start or disrupt an industry. Unlike many private equity offices, we don’t have rigid investment criteria. For example, in the last few years we’ve invested in a two-person Detroit-area start-up (VESTA Modular); acquired a Chicago-based cable company with a rapid expansion vision (Tikoo Solutions); and acquired a 20-year-old Dayton, Ohio-based aerospace and defense company who supplies Tier 1 and government customers (ETI Tech). The commonality among these three platform companies are the strength of the management team, the vision, and an opportunity to disrupt legacy industries.
Complexity Creates an Advantage.
Real asset opportunities and operating companies are characterized by challenges in market dynamics, performance, cash flow and leadership. These factors make purchasing and operating companies difficult for most investors and create barriers to entry and inefficiencies in this market. These inefficiencies are even more prevalent in the lower middle market, where Simon Group Holdings believes that few participants offer the combination of capital and investment experience and leadership needed to ensure a successful investment life cycle. We have extensive experience defining the most effective business strategy, marshaling the proper management and talent, and directing the implementation of the operating plan.