The Firm’s investment strategy is based on the following five key elements:
1) Target middle market companies with significant growth or improvement potential.First Atlantic is primarily interested in acquiring controlling positions through its funds in businesses that it can help build through operating improvements, modifications in corporate strategy, and add-on acquisitions. In particular, the Firm looks for: (i) companies with strong expansion opportunities, either internal or through acquisitions; and (ii) companies with a sound business foundation where a limited number of identifiable changes in operating practices or business strategy can substantially improve financial performance.
2) Utilize consulting and operating expertise to add value. First Atlantic is distinguished from other private equity firms not only in its investment philosophy, but also by the extensive consulting and operating experience of its Principals. The Firm believes it utilizes these skills to add value and insight to a portfolio company’s existing operations, as well as to identify unique opportunities to grow portfolio companies both organically and through acquisitions.
3) Build companies and establish market leaders. First Atlantic seeks to build well-managed companies that are leaders in their respective markets through enhancements in their strategy and operations. For most of its portfolio companies, First Atlantic’s action plan includes significant improvements in the companies operations and the implementation of an add-on acquisition program. The objective is to create strong operating efficiencies and cost savings, grow sales and EBITDA, and enhance the strategic position and importance of the company within its industry.
4) Partner with management. First Atlantic views its partnership and close working relationship with a company’s management team as paramount to its investment success. Prior to any acquisition, First Atlantic’s principals spend a substantial amount of time with a company to develop a growth plan and a specific implementation program.
5) Create proprietary deal flow. First Atlantic’s emphasis on growth, its knowledge of specific industries and multiple successes in building companies often make the Firm the preferred partner for sellers and management teams who are interested in the growth of their company. This has led to a substantial deal flow from private or limited sale processes.
First Atlantic views the closing of an acquisition not as an end, but as the beginning of its long-term plans for that company’s growth. By maintaining a long-term strategic focus, working closely with management, and utilizing the investment and consulting skills of its Principals, First Atlantic has built a strong reputation for delivering superior returns and value to its investors and partners.