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Investment Criteria

Plexus provides capital to high performance middle market companies located primarily in the Southeast and Mid-Atlantic.  Under a co-investment situation, Plexus will expand its investment geography east of the Mississippi River. The Fund focuses on investments structured as subordinated debt with detached equity warrants. Its capital is used to fund organic growth, add-on acquisitions, leveraged buyouts, management buyouts, stock repurchases, and minority recapitalizations. The Fund has no specific industry focus preferring to invest in a variety of industries, including business services, consumer services, healthcare, manufacturing, value-add distribution, government contracting, and other basic industries.  

Plexus will not invest in seed or early-stage companies, as its focus is on later-stage, seasoned businesses with positive cash flow.  It is the Fund’s objective to invest in companies that have strong management teams with personal equity at risk, positive and recurring cash flow, a large market opportunity, and a need for capital to execute their business plans.  The typical company in which Plexus invests has minimum annual revenue of $10,000,000 and EBITDA of $1,000,000 or greater. Plexus invests capital in the form of equity; however, this is typically a small amount alongside a much larger subordinated debt investment. The principals at Plexus have strong relationships with traditional private equity funds and can make introductions to these funds, if appropriate, when a large amount of equity is required.

Geography:

  • Southeast
  • Mid-Atlantic
  • East of the Mississippi River

Industries:

  • Business services
  • Consumer services
  • Healthcare
  • Manufacturing
  • Value-add distribution
  • Other general industry

Use of Proceeds:

  • Acquisitions
  • Growth
  • Leveraged buyouts
  • Management buyouts
  • Recapitalizations

Investment Size:

  • $2,000,000 - $10,000,000
  • Plexus will co-invest for larger dollar amounts

Company Characteristics:

  • Minimum annual revenue of $10,000,000
  • Minimum cash flow of $1,000,000
  • Experienced and committed management team
  • Strong market dynamics
  • Sustainable cash flow
  • Proven business strategy

Plexus Will Not Pursue:

  • Seed or early-stage investments
  • Negative cash flow companies
  • Real estate development opportunities
  • Turnarounds
  • Project based financings (oil & gas exploration, motion picture production, etc.)
  • Foreign investments