We partner with companies that are, or have the potential to become MARKET LEADERS

Long-Term Defensible Competitive Advantages
We target companies that enjoy high barriers to entry, weak competition, few close substitutes, limited supplier power and/or strong franchise value with customers. These companies will typically have higher profit margins than their peers.

Quality, Motivated Managers
We target companies with managers who are talented, hard-working and trustworthy and whose interests align with ours.

Stage: Proven and Growing
We target companies that have proven business models, are profitable, have demonstrated growth potential and have raised little or no outside equity capital. We avoid companies that are in decline or that have little potential for additional growth.

Size: Small Middle-Market
We target companies that are large enough to utilize a meaningful portion of our capital but too small to access either the public markets, large private equity firms or the institutional leveraged lending market. Generally, these companies have revenues of $5 million to $100 million and enterprise values of $10 million to $100 million.

Geography: Primarily Texas and The Southwest
We live in, and focus on, this region. We therefore are especially well-positioned to partner with our region's companies.

• We can evaluate and close an investment efficiently.
• We can work actively with management to build a market-leading company.
• We can recruit outstanding board members.
• We can determine appropriate exit alternatives.

We will consider investing outside of this region if we have expertise in a particular industry and/or a strong
relationship with a company's management or shareholders.

Industry: A Generalist Approach
We are industry generalists. We have experience, and are comfortable investing, in a wide variety of industrial, distribution, service, healthcare, manufacturing, energy and media industries.

We also have experience in technology; however we avoid early-stage technology risk in favor of execution and market risk.

We do not invest in banks, life insurance companies, oil and gas exploration and development projects, real estate development or companies located outside of the United States.

Owner Needs
We tailor our investments to meet the specific needs of company owners:

1) Growth - We provide capital to companies that need to fund their continued growth. This growth may be "internal" organic growth or "external" acquisition growth.

2) Liquidity and/or Diversification - We also provide capital to companies with owners who desire liquidity and/or asset diversification. Such owners include:

• Family business owners who have reached a stage in their lives when they are ready to retire or play a less active role in their company's day-to-day operations;
  
  
• Ambitious private company owners that are ready to go to "the next level" and want to benefit from the value-added resources that a strong equity sponsor can provide;
  
  
• Large corporations that want to divest a subsidiary in order to focus on their core business or to improve their corporate balance sheet;
  
  
• Small public company shareholders that, for a variety of reasons, have concluded that their business interests are better served as a private company; and
  
  
• Private investors, including other private equity firms, that want to exit a portfolio company investment.
  
  

Value-Added
We do not participate in the day-to-day management of our portfolio companies. Instead, we provide strategic and financial guidance through each company's board of directors. We work hard on behalf of each portfolio company to address its specific needs, whether it be the recruitment of additional management team members, the creation of a world-class board of directors, customer introductions, acquisition analysis or additional financing.