“Family” is a theme that runs through every facet of Simon Group Holdings. Creating a strong sense of unity, vision and bonding for a common purpose is what makes SGH what it is – a unique entity within its universe.
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.
Our operationally-focused private equity funds focus on lower middle-market companies. We pursue a value-add investment and growth strategy that combines the talents of our highly experienced investment team with the proven daily performance excellence of leading operating partners. This is due in part to the sheer number of opportunities, and 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 us to help entrepreneurs build the proper team to scale their businesses. For existing management teams, we provide capital to enable rapid growth.
We help companies grow through strategic guidance and operational experience. Most private equity companies operate purely on financial metrics. While metrics are definitely important, the character and quality of the management team is what makes us different.
Sam’s guiding principle is to invest in people who have the entrepreneurial drive, passion and a vision to start or disrupt an industry using digital technology. Unlike many private equity offices, we don’t believe in just 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 (TSI Solutions); and acquired a 20-year-old Dayton, Ohio-based aerospace and defense company that supplies parts for some of the most advanced planes in the world (ETI Tech).
The commonality among these three platform companies is 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.
Commonalities in our investment partners
- Long-term relationship play
- High-net worth
- Industry synergies
- Willing to invest time and energy in our relationship
- Vision to impact or change an industry
- Collaborative in decision making
Commonalities in our acquisition strategy
- Entrepreneurs who are visionary leaders with ethical core values
- Industries that SGH has had previous success
- Legacy industries that are slow to adapt to digital technology integration
- Industries that have synergies within the SGH portfolio of companies
- Distressed companies
- Industries that have a potential for consolidation
- Organizations that would benefit from inserting management that possess strong operational backgrounds