Our
Approach

Disciplined process to identify companies capable of significant growth

Overview

Crescentia Capital partners with families and owner-operators to accelerate growth and drive value creation in the lower middle market. We collaborate closely with our management teams, employing a disciplined and focused investment approach that aligns our interests and commitment to the strategic growth plan.

Over our 30-year history, Crescentia has developed a playbook for sourcing, evaluating, closing, and monitoring investments. We emphasize a spirit of partnership with management teams and foster teamwork within Crescentia and its network of operating professionals.

Today, Crescentia utilizes a three-pillared investment approach that leverages the skills and experience of its investment and operating professionals.

Sector Focus:

  • Industrial Services
  • Infrastructure Services
  • Specialty Manufacturing

Thesis-Driven Investment Strategies based on in-house research and collaboration with Industry Advisors to identify sub-sectors with strong tailwinds

Hands-on Value-Creation Playbook led by our Operating Partners and investment professionals designed to accelerate growth

Sector Focus

Over our 30-year history, our investment professionals have developed deep experience and a strong commitment to investing across the following sectors:

Industrial Services

This highly fragmented market is comprised of a diverse range of niche service providers creating a significant opportunity to build and grow specialized and differentiated business designed to tackle customers’ increasingly complex operational and strategic challenges.

Infrastructure Services

The infrastructure services sector encompasses industries that provide essential services to the public including transportation, energy, water, and communication that are important to a functioning of modern society.

Specialty Manufacturing

As a result of the dynamic US industrial base, ever-changing technological landscape, and strong reshoring trends, many of these specialty manufacturers are enjoying renewed opportunities for long-term expansion and profitable growth.

Thesis-Driven Investment Strategies

Crescentia Capital conducts deep in-house research in collaboration with our network of operating professionals to identify attractive sub-sectors within Industrial and Infrastructure Services, and Specialty Manufacturing. We then leverage the relationships and calling efforts of these executives to drive proprietary sourcing often leading to lower purchase prices than "auctioned" deals.

Crescentia Capital typically makes control investments in businesses with $3 to $15 million of EBITDA that exhibit the following characteristics:

Differentiated Services or Products

Predictable & Recurring Demand

Strong Growth Trends

Partnership with Strong Management

Scalable Business Model

Defensible Market Position

Strong Cash Flow Generation

Consolidable Market

Value-Creation Playbook

Led by our Operating Partners and investment professionals, our repeatable value-creation playbook is implemented to accelerate growth.

Drive initiatives to improve and fully integrate operations:

  • People: Build Management teams and Boards of Directors and provide development/ mentorship
  • Processes: Integrate/Streamline operations
  • Technology: Implement technology to improve services/products and to automate processes

Apply strategies to accelerate:

  • Organic Growth: Drive sales with focus on quality of revenues
  • Acquired Growth: Integrate/Streamline operations
    • Expand products and services
    • Expand geographies
    • Diversify customers/ end markets

For Business Owners

Differentiated Approach

Crescentia Capital recognizes that selling your business or inviting a new institutional investor into your company is a momentous decision that should not be taken lightly. We have invested in more than 65 businesses and have a deep appreciation for what such a decision can entail. We believe that our approach is different in that we strive to serve as partners to help grow and enhance organizations to achieve their true potential.

Deep Experience

Our team consists of investment professionals, operating professionals, and industry advisors that have direct experience working with entrepreneurial businesses in the lower middle market. We know and appreciate the challenges and opportunities in this space.

Flexibility

Our investments often allow sellers to maintain a significant minority ownership position and a key strategic role in the business following a transaction, while also achieving partial liquidity for their personal investments.

Relationship-Focused

We are a relationship-focused firm that has a long, consistent track-record of delivering on what we promise. Clear communication and transparency are of the utmost importance to us. Our differentiated culture, collaborative approach, and disciplined processes are designed to align all stakeholders to achieve sustainable competitive advantages and superior results in each of our investments.

For Intermediaries

In many instances, the existing owner is seeking financial liquidity and/or capital to further scale the business. While we attempt to maintain comprehensive coverage across our focus industries, we recognize that there are many opportunities that we would not see without the involvement of buy-side and sell-side intermediaries. As such, intermediaries play a crucial role in our success. Crescentia Capital’s equity buyout business is pleased to pay success fees to buy-side intermediaries for completed investments sourced for us.

Our goal is to evaluate opportunities in a thoughtful manner providing you with candid and timely feedback. Our dedicated team of investment professionals welcomes the opportunity to discuss more about how we can work together.