Investment Criteria
Starlit Capital Partners’ investment team focuses on making control equity investments in companies that meet our thematic parameters and fit the following financial and business characteristics:
FINANCIAL CHARACTERISTICS
Size
Revenue of $20M–$200M
for Platform centerpieces;
$5M–$50M for bolt-ons
Enterprise Value
$5M to $75M equity, plus debt
Gross Margin
Prefer 30% or greater
Investment
$5M to $75M
equity, plus debt
EBITDA
$5M–$20M for Platform centerpieces; $1M–$10M for bolt-ons (prefer +10% margins)
Equity Type
Control positions
BUSINESS CHARACTERISTICS
Market
Minimum $150M market size
Management
Prefer existing talented teams to transition with acquisition
Geography
Prefer North America; open to select global opportunities
Niche Industries
Competitive advantages such as barriers to entry (certifications, equipment, geographic exclusivity) and defensible positioning (IP, advanced “know how”)
Growth
Strong growth prospects in its core business with identified external opportunities
Customers
Prefer limited customer concentration in most industries; B2B