| Q: |
In what industries does SG like to invest? |
| A: |
We target companies within technology, branded consumer products, medical devices and financial services. However, we are open to review any profitable, growing niche market leader.
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| Q: |
What is the typical investment size? |
| A: |
We look to invest between $10 million to $150 million of equity per transaction. Larger investments are done in partnership with our network of investment partners.
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| Q: |
How does SG work with a company after closing the investment? |
| A: |
We encourage our portfolio companies to leverage our expertise and corporate contacts. SG is an active partner and can provide assistance in many areas such as: strategy, financing, identifying acquisitions, management and board recruiting, and introductions to decision makers in Global 2000 companies. The typical SG investment has formal board meetings, with the frequency determined in partnership with management.
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| Q: |
How does SG differentiate itself from other venture capital investors? |
| A: |
Unlike traditional venture capital firms, our focus is on being the first institutional investor in companies that are profitable at the time of our investment. We have developed deep expertise and extensive corporate contacts in a select group of industries. We seek to leverage our contacts, network of operating executives, capital and experience to build extraordinary value. As an active partner we provide guidance and serve as a sounding board for management as they navigate through the challenges of managing growth.
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| Q: |
How does SG differentiate itself from other leveraged buyout investors? |
| A: |
Unlike traditional leveraged buyout firms, we are active investors and work closely with management to grow earnings. We assist management in developing strategic direction, recruiting key personnel, financing growth, identifying and negotiating acquisitions, and positioning the company for a successful future exit.
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| Q: |
What stage investment is preferable at SG? |
| A: |
We invest in profitable, growing companies.
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| Q: |
Will SG co-invest with others? |
| A: |
We are open to investing with other investment firms, strategic investors, and angel investors.
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| Q: |
Does SG have a geographic preference? |
| A: |
Our primary focus is on profitable, growing companies based in North America. We will consider attractive opportunities in other parts of the world.
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| Q: |
How long does it take to close an investment? |
| A: |
Typically investments close 30 to 90 days after agreeing to terms.
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| Q: |
Who makes the investment decision? What is the process? |
| A: |
Kenneth A. Fox has the final say on all Stripes Group investments. This allows Stripes Group to be more nimble and close transactions more quickly than other private equity firms.
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| Q: |
What is SG's holding period for an investment? |
| A: |
Unlike most other private equity firms, we are privately financed and do not have a predetermined holding period. We will hold investments until it becomes prudent to exit.
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| Q: |
Is your preferred exit route an IPO or a merger? |
| A: |
We have no preferred exit route. We have extensive experience helping our portfolio companies with both IPOs as well as sales/mergers.
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| Q: |
Why wouldn't I do an IPO now instead of partnering with SG? |
| A: |
SG is an attractive alternative to an IPO because an IPO and the corresponding "lock-up" periods, will likely limit the level of liquidity that seller's can achieve. Further, there are significant costs associated with being a public company. Additionally, being public can deter from long term strategic value creation as managers are forced to focus on shorter term results. When an IPO makes sense, we will help you put the processes in place to be a successful public company. We can be very helpful with introductions to investment bankers, potential board members and other parties to maximize the opportunity for a successful IPO.
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| Q: |
What are your return expectations? |
| A: |
We are seeking a return of 3-5x our investments. This varies depending on a range of factors.
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