Entrepreneurial Process to Critical Thinking
Oxer BCP is actively seeking opportunities to provide private investments in established and profitable lower middle-market operating companies. We offer competitive costs of capital based upon the risk of the security in relation to the operations of the company.
Uses of Capital:
- Organic Growth
- Strategic Acquisition
- Private Equity/Family Office Acquisition Purchases
- Balance Sheet Recapitalizations
- Shareholder Liquidity
- Management Transitions and Buyouts
- ESOP Transactions
Portfolio Company Characteristics:
- Generates annual revenue between $10 million and $100 million;
- Has historical and sustainable/growing EBITDA levels of over $1 million;
- Operates in stable or expanding industries;
- Exhibits a stable balance sheet;
- Managed with experienced, established and invested operating teams;
- Demonstrates identifiable competitive market position;
- Illustrates financial discipline and infrastructure to manage leverage relative to cash flow from operations.
- $2-10 million in customized subordinated debt and equity co-investment capital;
- Typically a bullet maturity of 5 years or prolonged interest-only period;
- Current pay interest of 10+% based upon risk of security relative to operations;
- Risk-based yield enhancements through warrants, success fees, and accrued interest based upon security relative to operations;
- Second lien on assets and pledge of stock as collateral for debt securities; and
- Our investments typically require board seats or observation rights.
Oxer BCP will generally avoid investments in industries where businesses tend to be vulnerable to changes in economic cycles, are highly capital-intensive, have extreme customer concentrations or are highly commoditized.
As an SBIC with SBA oversight, we invest in small businesses (as defined by the SBA) and are generally prohibited from investing in passive investments, non-U.S. businesses, real estate, re-lenders and other financial companies, or project financing.
If our capital does not provide value that exceeds the cost, we would not invest.