Q: What types of investments does Bridge Street Capital want to make?
A: Our emphasis is on companies that need growth capital to facilitate business expansion or to fund a transition of ownership. We search for companies with a strong management team in place, a well-defined, working business model, a history of stable profitable growth, and a likely prospect for future organic growth.
Q: What size companies will the Fund consider?
A: We generally look for companies with revenues ranging from $5 to $50 million. We are, however, willing to work with financial partners in order to invest in larger companies.
Q: What size investment does Bridge Street Capital prefer?
A: We prefer to invest between $2.5 - $7.5 million in each portfolio company.
Q: Geographically, where do you want to make investments?
A: We will consider investments throughout the Midwest.
Q: In what industries does Bridge Street Capital like to invest?
A: We have experience in a broad range of industries, including industrial manufacturing, distribution and logistics, consumer products, healthcare, and business services. We are open to reviewing any opportunity with a profitable, growing company located in the Midwest.
Q: Do you like to be a lead investor? Will you co-invest with others?
A: We prefer to be the lead investor, but will also co-invest with other similarly minded financial partners.
Q: Does Bridge Street Capital prefer to have control of the company?
A: We may, or may not, be the controlling owner of the company. More importantly, we will be active financial partners and endeavor to assist management teams in achieving their goals. The strong management team, with whom we have chosen to partner, will handle day-to-day management of the company.
Q: What does the investment process look like?
A: The investment process starts by reaching a general understanding with the seller as to the financial terms and structure of the transaction. We also meet with the management team to determine their personal objectives, and discuss with them how they can participate in ownership. Once we have this framework, we move to a thorough examination of the operational, financial, and strategic growth prospects of the business. The deal is then documented by the respective legal advisors and closed.
Q: How long does the process typically take?
A: We can move as quickly as needed to close a transaction. Typically, we can issue a commitment in 30-45 days, with an expectation to close the transaction 30-45 days thereafter.
Q: Who makes the investment decision? What is the process?
A: The Managing Directors, after first agreeing that an opportunity is appropriate, will preview the investment with the Executive Committee. As a result of this early preview, the due diligence process is customized to focus on the most important items requiring confirmation. Once due diligence is completed, the Managing Directors and Executive Committee will meet to formally approve the transaction.
Q: Where do you obtain capital?
A: Our capital has been committed to us from a cross-section of high net worth individuals, families (or family offices), and institutional investors. Many of our investors have owned and operated their own private companies, and therefore understand the market opportunity that Bridge Street Capital is pursuing. It's particularly important to know that the principals of Bridge Street Capital have also made a significant personal financial commitment.
Q: How does Bridge Street Capital add value to a company after closing?
A: The Managing Directors and our Executive Committee members have broad operational experience. We can help a company realize its goals by assisting in key areas such as strategic and business planning, operational consultation, mentoring key members of management teams, procuring capital and preparing the company for realization events.
Q: How does Bridge Street Capital differentiate itself from other investors?
A: Our practical experience will be valuable to portfolio companies as they look to transition themselves to the next level. We are entrepreneurs ourselves, and know what is important to the company and its employees, as well as our fellow owners. Founders and families nurture their businesses in certain ways, and our approach, values, and beliefs are consistent with these principles.
Q: Who do I contact to learn more?
A: Contact us.