Who We Are
Brantley Partners has achieved superior long term investment returns by investing expansion/buyout equity capital in profitable companies at the lower end of the middle market.
What is our Strategy? What do we look for in Potential Investments?
We focus exclusively on profitable businesses. Our transactions typically involve companies with revenue of $40-$150 million. Our typical transaction size is up to $100 million.
We are always the lead investor in our transactions. Our goal is to partner with accomplished management teams who can achieve exceptional growth with the infusion of capital provided by Brantley. Most of our transactions are completed outside of the auction market in discussion and negotiation with management teams who share our vision for the growth of their businesses.
We target investments in which our capital is employed to enhance the growth of our platform companies. Our investment philosophy is predicated on generating superior returns by working with management teams to establish a strategy that significantly improves both the quantity and quality of the company’s operating earnings. We have developed expertise and a track record in a variety of industries. Typically, the industries that we target exhibit low capital expenditure requirements so that cash flow can also be used to enhance growth.
We have traditionally sourced investments from our extensive network of lawyers, accountants, bankers, and management teams that have been involved in prior Brantley investments.
How Do We Implement our Investment Strategy?
Our investment strategy is grounded in our unique ability to provide expansion capital to strategically reposition companies for long term growth and creation of significant economic value.
We do that by investing in portfolio companies and partnering with management to develop a growth strategy that will significantly improve both the quantity and quality of earnings. Our consultative approach to strategic redirection is a critical element to both the initial investment thesis and the demonstrated success of our portfolio companies. Brantley’s investment style is largely built around a philosophy of partnering with management. Operating management typically holds significant equity in each of our portfolio companies. This structure aligns the interests of Brantley and management and fosters a partner-based relationship.
Our companies do make acquisitions over the life of our investment, however, we employ acquisitions only to enhance or complement organic growth. We avoid overleveraging our companies. A hallmark of our strategy is prudent use of leverage that does not hamper the internal growth of our companies. We also employ equity incentives to make sure the interest of management and investors are aligned.
The proof of our strategy is in our results. Our investment results are based on the growth of the profitability of our companies. EBITDA and cash flow growth matches the growth of the equity value of our companies.
Our strategy is consistent. All of our investments meet the goals of investing in profitable companies with strong internal growth, low capital expenditures, low leverage, and a partnership with management based on significant equity ownership.
Returns and Performance
Our superior returns are based on business fundamentals and increasing both the quality and quantity of earnings. Returns are not based on ebullient capital markets. There is very little volatility in our returns because of the historic profitability of our companies and the prudent capital structure we employ. As a result of our investment strategy and proprietary deal flow, Brantley has generated realized returns of 30.2% and a 3.8x cash multiple on our growth buyout investments since 1987.
Our investment strategy is also scalable. We have been in the same markets since 1987, starting with $1 million investments. We can invest up to $20 million in an individual transaction. Along with our partners, we have led transactions that total over $1 billion of equity investment. Our overall returns, including realized and unrealized investments, since 1987, are approximately 28%.
Organization (see management)
Our organizational framework is consistent with our strategy and style of investing. Our team of senior partners has worked together for over ten years. Our investment model is predicated on senior partner involvement throughout the investment cycle, from the initial meetings through to the exit of the investment.
Exits
Because we target investment opportunities with strong internal growth, profitability, and minimal capital expenditure requirements, we have a history of exiting investment through a variety of methods. We have successfully executed recapitalizations, sales to strategic and financial buyers and initial public offerings in our previous partnerships. This flexibility enables us to both maximize value for our investment partners and our management partners.
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