McCarthy Capital Investment Focus

Our investment focus has not changed since our founding – we grow businesses in partnership with management teams pursuing a variety of strategies for creating long-term value. We partner with companies having growth potential, established profitability and proven managers who retain operating control and significant ownership.

Transaction characteristics

  • Equity investments of $15 million – $75 million

  • Majority or minority positions

  • Growth equity investments, management buyouts and recapitalizations

  • Management-friendly capital, typically holding common equity alongside management

Company

  • Annual revenue of at least $10 million

  • Demonstrated profitability

  • Proven business models, an established customer base and market share

  • Scalable businesses with a preference for recurring revenue

People

  • Established management teams with a demonstrated track record for growth and profitability

  • Managers with a significant ownership position in the company, representing most of their financial net worth

Products/Services

  • Products and/or services that are branded or differentiated

  • Products and/or services that generate consistent operating earnings

Markets

  • Markets with favorable growth prospects – either through participation in growing industries, market share expansion, industry consolidation or innovative business strategies

We have deep experience investing in the following industries:

  • Business services, including: technology-enabled business services (SaaS, software and IT services), value-added resellers and media and communications

  • Financial services

  • Consumer

We are not pursuing investments in the following:

  • Transactions where management does not desire to retain meaningful ownership

  • Real estate

  • Broad auction processes

Emerging Growth Investment Focus

McCarthy Capital also has an Emerging Growth strategy that makes growth equity investments of $5 million to $10 million in businesses with $2 million to $10 million of recurring revenue.

Emerging Growth Investment Focus