INVESTMENT STRATEGY

Beacon Tree Capital's investment success begins and ends with successful operators. We believe that aligning interests with operators is key to shared success and, accordingly, contribute our resources to help drive value throughout the life cycle of an investment.  Our investment process starts with our Operators and then moves to Purchase, Operations, and Exit.

Operators: We partner with proven management that has demonstrated excellence and desires to develop and maintain a meaningful equity position in a growing business. We strive to align management incentives with those of the investors throughout the life cycle of the investment. Although we will provide support and counsel as active board members and advisers, we believe our management teams should run our companies on a day-to-day basis.  At times, we will consider working and running the business, if the situation requires.

Purchase: All companies have unique objectives and strategies during financial transactions. We have experience in virtually all of them. We have experience with management-led buyouts, growth financing, recapitalization and venture capital formation. In all our transactions, we look to invest in majority and take control of the business operations and trajectory.  Because we work with a select group of closely-held family offices, we can quickly commit capital and close transactions without being encumbered by unnecessary approval processes. Our due diligence and legal documentation, while thorough, serves to expeditiously and properly close a transaction, not to pad a file for review by third parties.

Capital: What makes us different is that we invest to truly align investor and management incentives so that our focus is on our businesses. We can also provide patient capital through both good and bad times. We have no arbitrary deadline to exit transactions imposed by our investor base. We are experts in financial engineering, ensuring that purchases are structured correctly for the future. We leverage our long-term lender relationships for optimal pricing on any debt the company needs without the requirement of personal recourse

Operations: Our job is to support management's efforts to grow the business. We do so by providing a wealth of experience in growing businesses ourselves. Our partner base has been successful with investing in and operating businesses of all sizes, from small family operations to Fortune 100 companies. Beacon Tree Capital team are active board members (and at times, work directly at the company) providing strategic guidance, financial skills and introductions to attract key talent that an operator may need. Our experience tells us that no two business situations are the same, but most share common problems and opportunities that can be addressed by consistent approaches. We bring vertical industry expertise and senior level relationships with decision-makers and top-tier operators to help drive customer growth and increased distribution through new channels and markets

Exit: We don't make investments just to sell them. We want to invest in companies to see them grow over the long term. We believe that exiting an investment is an opportunity, not a strategy, and that the best way to create quality exit opportunities is to operate businesses as if you will own them forever.  In fact, we approach each transaction as if we are looking to own this business forever.  We are sensitive to the desires of our operator. When he or she believes there is a good opportunity to sell, we will follow that lead because our incentives are aligned. We devote the same rigorous attention to selling that we do to buying. We have access to the most competent intermediaries to execute a sale, recapitalization or public offering. This ensures the success of the investment, the success of the investors and, most importantly, the financial success of the operator.