Cadent commits between $25 million and $75 million per investment, or more in syndication with investment partners. We typically invest in private companies that have been self-financed to date, or have taken in some funding from professional investors. We also target opportunities to sponsor proven management teams in the establishment of a new company, finance private mergers or acquisitions, corporate divestitures or spinouts, and restructuring situations.
Our portfolio is diverse in size and spans a wide range of sub-sectors within the energy industry. We evaluate every company on a case-by-case basis, and we will work closely with each management team to formulate and execute a strategy that leverages each organization's own competitive advantages. However, each of these companies do share common elements; a strong management team, a history of successful execution and an ability to grow. Required characteristics for Cadent investments include:
Based in North America and energy-focused
Cadent invests exclusively in energy companies. While our portfolio companies do often conduct business internationally, they are generally headquartered, or they have a substantial presence, in the United States or Canada.
Small or medium size
Cadent's target investments typically have annual revenues ranging from $10 million to $100 million. We will also invest in a start-up company with a highly experienced management team with a proven record of creating shareholder value.
Clear strategy with a well-conceived growth plan
The strategy, often involving organic growth and/or accretive acquisitions, will be logical and achievable. We take a particularly close look at the company's competitive advantages, to ensure they can be protected from competition and are sustainable across industry cycles.
First-class management team
We look for strong, committed management teams. Ideally, the team will have a history of working together, and each member will be able to demonstrate a track record of success. Cadent expects management will adhere to the highest ethical standards.
Alignment of management and investor interests
Cadent seeks to align management's interests with all shareholders by requiring management to be equity holders. Compensation is often augmented through generous profit-sharing and option plans.
The exit strategy for investments is clearly defined as part of the initial investment process. We work with the management team to identify multiple scenarios under which we might exit the investment. Typically our companies become acquisition targets or their assets can be monetized, but some may also have strong IPO or leveraged recapitalization potential.
If you are an entrepreneur or business owner looking for expansion capital, and your company fits the criteria above, we would like to hear from you. Please submit a business plan to any one of the Cadent professionals listed on the team page.