Spire Capital's investment focus on the smaller end of the business services, information services, education and media and communications industries allows Spire to concentrate solely on those industries where there is domain expertise and where numerous investment opportunities can be sourced with superior growth characteristics.
Spire Capital provides buyout and investment capital to platform companies with ample cash flow and scale, typically greater than $3.0 million in EBITDA, eliminating certain risk factors associated with an earlier-stage focus and where Spire Capital assistance can “move the needle” quickly. Complementary add-on acquisitions to an established platform company are often an integral component of Spire Capital's investment strategy, helping to leverage capital, operations and management.
A hallmark of Spire Capital's investment strategy is the establishment of a diversified portfolio consisting of companies across various industry sub-sectors. The core concepts of its investment strategy are set forth below.
- Partnerships with Management - Spire distinguishes itself on its relationships with past and present management teams who serve as resources, references and foundations for future portfolio companies. Spire works hand-in-hand with each of its management teams to navigate both their operational and strategic goals. Often times, Spire Capital partners with management through an Executive in Residence program whereby the prospecting for potential investments and the due diligence process are done in concert with management to further reduce investment risk and more clearly identify future opportunities of a mutual interest.
- Industry Focus -The business services, information services, education, media and communications industries exhibit growth characteristics, structural change, a shifting regulatory environment, and increasing demand for new and innovative products and services that create a multitude of investment opportunities.
- Active Portfolio Company Involvement - Spire Capital's Investment Professionals direct participation in the targeted industry segments has proven to be extremely valuable from the due diligence process to working alongside our senior leadership teams every day. Strong knowledge of the underlying business models, accompanied by the ability to effectively access industry experts, recruit team members and industry board members positions the firm to efficiently evaluate potential investment opportunities, prospective management teams and provide additional value to our companies as they grow.
- Extensive Network of Industry Relationships - Spire Capital's extensive relationships with companies, founders, senior executives, investment bankers, consultants, vendors and analysts within the targeted industries, as well as the firm's small market focus, results in access to, and distinct advantages in, the numerous investments that the firm consistently evaluates. This network of relationships provides Spire with a distinct advantage in a competitive transaction environment and in aiding our management teams as they seek to benchmark best practices and grow their companies in today’s highly competitive business environment.
Focus on Small Market Buyout Opportunities with Superior Growth Profiles - Spire Capital focuses on companies under $150 million in Enterprise Value with significant operating leverage, barriers to entry, recurring revenue streams and superior growth potential. Spire creates value by (i) expanding distribution channels, (ii) broadening geographic territory, (iii) increasing the number of, and demand for, products or services, (iv) pursuing strategic acquisitions and (v) facilitating new business relationships for our companies within our vast network of relationships. Spire Capital’s primary focus on small market companies with enterprise value of $150MM or less (typically $3.0MM-$15MM in EBITDA) insulates it to some degree to the more competitive mid market where firms typically focus on companies with EBITDA of $15MM or more and enterprise values exceeding $150MM.