Does SunTx invest in start up or early stage companies?
Does SunTx not invest in any other areas?
What is the geographic focus of SunTx's investment strategy?
Why does SunTx have a geographic focus in its investment strategy?
What is the typical transaction size that SunTx seeks?
Does SunTx always take a control position in an investment?
What is the typical length of time that SunTx will own a company?
What is the process to have SunTx review an investment opportunity?
Does SunTx invest in start up or early stage companies?
No. SunTx typically requires a steady history of operating free cash flow to fund an investment. Annual operating free cash flow in excess of $10 million (or a verifiable pathway to achieve free cash flow of $10 million within 12 months of investment) is typically preferred for portfolio company investments. However, SunTx has invested in platform companies on which to build a previously identified series of add-on acquisitions.
Does SunTx not invest in any other areas?
SunTx does not invest in real estate projects, life science companies, technology or information systems companies or oil and gas exploration.
What is the geographic focus of SunTx's investment strategy?
SunTx primarily focuses its investments on companies with operations in the southern United States, or Sun Belt region. The Sun Belt region includes the following states: Alabama, Arizona, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
Why does SunTx have a geographic focus in its investment strategy?
The southern United States has experienced greater economic growth than other regions of the county. The southern United States, or Sun Belt, benefits from lower cost labor, growing population, warmer climate, lower taxation rates and more flexible state regulatory regimes, all of which create conditions for robust economic growth. These attributes, combined with an absence of private equity investment funds dedicated to this region, make the Sun Belt an attractive geographic region for further growth and investment by SunTx.
What is the typical transaction size that SunTx seeks?
SunTx current investment fund typically targets investments in companies with enterprise values ranging from $50 million to $150 million. SunTx will consider smaller transactions as platforms on which to build a series of identified add-on acquisitions.
Does SunTx always take a control position in an investment?
Typically, SunTx prefers to take a control position in the companies in which it invests. SunTx, however, does not intrude in day-to-day operations or daily oversight of the company. Active discussion, debate and analysis at the Board of Directors level is typical for most portfolio companies.
What is the typical length of time that SunTx will own a company?
SunTx anticipates holding its investments for between four and six years. Certain platform investment companies may be held for a longer period of time.
What is the process to have SunTx review an investment opportunity?
Please submit an executive summary, term sheet proposal or business plan for review by one of the Principals at SunTx.
