Emerging Growth Investment Focus

McCarthy Capital’s Emerging Growth strategy makes growth equity investments of $5 million to $10 million in businesses with $2 million to $10 million of recurring revenue.

Company Characteristics

  • Annual revenue of at least $3 million or at least $2 million of ARR

  • Revenue growth of at least 15% annually; gross margins of at least 40%

  • Scalable businesses with a preference for recurring revenue, either via contract or purchasing frequency

  • Software, technology enabled business services and consumable consumer products companies

  • Established management teams with a track record for growth

  • Proven business models, an established customer base and traction in the market

  • Products and/or services that are branded or differentiated

  • Markets with sufficient size and favorable growth prospects

  • Clear path to profitability

Investment Characteristics

  • Investments of $5 million – $10 million

  • >50% primary growth capital

  • Founders/managers maintaining significant ownership

  • Ability to form a strong partnership with management

  • Preference for minority ownership position

  • Not necessary to be first or only institutional capital or to be lead investor