RCP makes investments in companies with enterprise values generally between $20 and $75 million at the time of initial investment. In any given transaction, RCP, along with the resources of its limited partner and other related co-investors, typically invests $3-$8 million of initial equity capital into a company. RCP is flexible in its overall investment approach, and has interest in pursuing both majority and minority ownership positions.
RCP is focused on investing in companies that meet certain strategic, operating, and financial characteristics. These parameters include the following:
An accomplished management team willing to make a financial commitment to the future success of their business
A core business with a sustainable competitive advantage in its market segment, derived through a combination of proprietary products or services, low cost production, and/or superior service or distribution capability
Ongoing growth trends in the industry and industry sub-segments
Significant prospects for revenue growth, expansion of profit margins, and additional opportunities to expand business scope either through acquisitions or internal growth
Minimal exposure to technological or strategic business obsolescence
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Revenue typically between $20-$75 million, earnings before interest, taxes, depreciation and amortization ("EBITDA") between $3-$7 million, and a history of profitable operations. RCP will consider companies below these parameters if they possess high growth characteristics or create a strategic fit with a current RCP portfolio company
A fit between RCP and its prospective management partners. RCP's approach is that there should be interpersonal chemistry, a sense of teamwork and a commonality of goals and objectives
Absent special circumstances, RCP is not interested in stand-alone turnarounds, hostile takeovers, start-up companies, or businesses in highly regulated or commoditized industries.