INVESTMENT CRITERIA

Investment Size

$5 million to $100 million

People, Brands and Culture

SGH invests in people before anything else. First, we want to associate with the best managers and the top executives in any industry we enter. Second, we look for brands that have a durable competitive advantage and remain relevant across changing fads. Lastly, we want all of our partners to be fully invested in our collaborative culture that respects the contributions of each individual and rewards our team members according to their contributions to the overall success of our businesses.

“We partner with exceptional people who know their industry and their company from the inside out, and who want to drive organic and collaborative growth over the long term. Our capital and our resources are deep and patient, and quick to respond to any situation.”
— Sam Simon, Founder & Chairman

Investment Value Principles

We target companies that are under-managed and have under-utilized capacity. This includes companies that are under-capitalized, or technology deprived, corporate orphans, companies facing a generational transition dilemma, and any special situation where our quick response and deep reserve of talent contribution can realize an extraordinary purchase value. We are disciplined in our decision-making, carefully considering both company-specific risk/return dynamics, along with how each investment fits from an overall portfolio construction perspective.

Investment Structure

Common Equity, Preferred Equity with conversion rights, senior debt, and junior debt with significant warrants – our goal is to work with management and align all of our interests in order to create significant upside value.

Target Revenue

> $15 million

Ownership

Control position in privately held companies.

Industries

  • Oil & gas
  • Logistics & 3PL
  • Manufacturing
  • Distribution
  • Technology
  • Aerospace
  • Telecommunications
  • Modular construction
  • Leasing

Geographic Focus

  • Northeast
  • Great Lakes
  • Southeast
  • Mid-Atlantic

Capital Uses

  • Acquisitions
  • Management buy-outs
  • Growth capital
  • Financial restructurings
  • Corporate divestitures
  • Generational transitions

Time Horizon

We target a monetization valuation within not more than 5 years in order to carefully refine our operational and financial strategies and to calculate our projected returns. We consider these decisions about exit or monetization, with management’s full input, during years four and five.