General Characteristics
Burke Capital partners with management teams in making private equity investments across a wide range of small to mid-sized companies.
Investment Size
We primarily focus on equity investments in the range of $3 to $30 million in companies with pre-transaction enterprise values of approximately $125 million or less, although we possess the ability to close on larger transactions through our network of affiliated equity investors. We will fund either single tranche investments or, in some cases, planned multiple tranche investments in which the follow-on investments are the intended result of a successful business plan implementation.
Control Investments
We prefer to take controlling positions when possible and appropriate. However, in certain circumstances, we will also consider non-control investments in which our investment represents a considerable ownership position among like-minded investors in the company. In all cases, we expect to have significant representation on the company’s Board of Directors.
No Investment Committee
Our funding source eliminates the typical requirement of an Investment Committee, which enables us to reach decisions and react faster than most of our private equity sponsor peers.
Flexible Investment Horizon and Return Criteria
While we measure our investment performance with traditional metrics such as cash-on-cash return multiples and internal (cumulative) return rates, our funding source allows us greater flexibility as compared to many of our peers with respect to both investment horizon and return criteria. We are patient and recognize that even successful, well-run companies may encounter unforeseen challenges along the way. We also understand that certain investment and business strategies require longer periods for successful implementation. We expect investment returns to be driven primarily by growth and operating improvements in the company, and only secondarily from the use of financial leverage.
Prudent, Flexible Capital Structures
We believe in providing the appropriate type of capital for management to execute its business plan and avoid over-leveraged structures that may inhibit this goal.