Propel’s investment philosophy is based on providing value beyond the capital. We are skilled operators and investors focused on combining those disciplines to appropriately value opportunities and drive performance improvements in the businesses we partner with following the investment.
Disciplined Investment Approach
Propel’s extensive investment experience has created a sound methodology for identifying branded consumer products companies with significant upside potential and limited downside risk. Whether it is through a buy-out, recapitalization, or a carve out from a larger corporation, we generally seek to establish conservative capital structures that position portfolio investments to succeed without the burden of extensive debt or overly cumbersome capital structures.
Value Added Operators
Propel lends its own operational experience to a portfolio investment to assist in identifying the critical strategic, operational and financial priorities necessary to increase revenue, expand margins and create incremental equity value. We believe strongly that the key to our success is identifying, building and partnering with strong management teams. To accomplish this we align both our short and long-term interests with management teams and provide meaningful ownership in our businesses.
As a result of our corporate finance and operational experience, Propel’s principals have created an extensive network to call upon for proprietary transaction flow, transaction related or add-on financings, and executive management expertise. This network’s input and guidance can be instrumental to creating incremental equity value in a portfolio investment.
We seek to invest up to $50 million of equity in each transaction, and generally look for businesses with enterprise values of up to $100 million. In general, we pursue branded consumer product related transactions where Propel is the controlling investor. In certain circumstances we may engage in larger transactions in collaboration with our investment partners, and we will also consider smaller investments as add-on or tuck-in transactions.