The Firm’s investment strategy is based on the following five key elements:

Targeting middle market companies with significant growth or improvement potential.  First Atlantic is primarily interested in acquiring controlling positions through its funds in businesses that it can help build through operating improvements, modifications in corporate strategy, and add-on acquisitions. In particular, the Firm looks for: (i) companies with strong expansion opportunities, either internal or through acquisitions; and (ii) companies with a sound business foundation where a limited number of identifiable changes in operating practices or business strategy can substantially improve financial performance. The firm does not look to invest in distressed or “turn–around” opportunities, but rather seeks undermanaged companies that can benefit from the professional management, strategic focus, financing, and operating skills which First Atlantic’s Principals can bring to their portfolio companies. While not limited to any specific industry focus, First Atlantic has a strong and continued interest in the industrial and consumer goods, packaging, food processing, general manufacturing, and other sectors. The firm also has an interest in select service industries, particularly those with a business-to-business focus.

Building and establishing market leaders.  First Atlantic seeks to build well-managed companies that are leaders in their respective markets through strategic redirection and enhancements in management. In building its portfolio companies, the Principals work with management at the outset to (I) establish an operating and strategic plan (“action plan”) that governs the companies initiatives from the time of acquisition; (ii) develop consistent monitoring gauges to measure the company’s progress and performance; and (iii) strengthen the existing management team and its supporting infrastructure. In most of its portfolio companies, First Atlantic’s action plan includes significant improvements in the companies systems and the implementation of an add-on acquisition program that will create strong operating efficiencies and cost savings, grow sales and EBITDA, and enhance the strategic position and importance of the company within its industry.

Utilizing consulting expertise to add value.  First Atlantic is distinguished from other private equity firms not only in its investment philosophy, but also by the extensive consulting experience of its Principals. The Firm utilizes these skills to add value and insight to a portfolio company’s existing operations, as well as to identify unique opportunities to grow new and existing portfolio companies both internally and externally. The Principals take an active board-level role in portfolio companies, working in partnership with management to build long-term equity value. The process of adding value through strategic and operating enhancements begins before the transaction is completed, with the outline of an operating and strategic plan developed in partnership with the company’s management. It continues when the transaction is completed with the immediate implementation of short-term operating improvements and the launch of key long-term internal strategic growth programs. The process is subsequently expanded with a thorough analysis and identification of acquisition opportunities developed jointly by members of the management team and First Atlantic. These add-on acquisition candidates are then systematically approached and pursued. Throughout this process, First Atlantic works closely with management on specific strategic and operating issues when its support is required, and on the negotiation and financing of add-on acquisitions. The operating and consulting skills of the First Atlantic team, as well as its experience integrating acquired companies, are critical to this process.

Partnering with management.  First Atlantic views its partnership and close working relationship with a company’s management team as paramount to its investment success. Prior to any acquisition, First Atlantic’s Principals spend a substantial amount of time working with a company to understand the issues and opportunities facing its management team. Through this interaction, First Atlantic develops a prudent capital structure that accommodates the future capital requirements and growth opportunities of the acquired business, and aligns its interests with those of management by requiring management to reinvest on the same basis as the Firm, and by establishing significant incentives. The Firm and its Principals have substantial experience in assisting management teams in identifying and executing acquisitions, financing major expansion projects, and recruiting additional management talent as the organization grows.

Creating proprietary deal flow.  First Atlantic utilizes its broad network of relationships with various middle-market intermediaries to identify new platform investments and add-on acquisition opportunities. These relationships include an extensive database of small brokers, advisors and industry specialists, as well as the personal and professional relationships of the Principals and operating management within and across various industries and professions. These relationships have been instrumental to the success of first Atlantic’s portfolio companies.

First Atlantic views the closing of an acquisition not as an end, but as the beginning of its long-term plans for that company’s growth. By maintaining a long-term strategic focus, working closely with management, and utilizing the investment and consulting skills of its Principals, First Atlantic has built a strong reputation for delivering superior returns and value to its investors and managing partners.