Investment Strategy

• Investment Criteria
• Our Value Added
• The Investment Process
• Our Partnership Value System

South Atlantic seeks opportunities to provide $1.5 million to $7.5 million in private equity capital. We can arrange larger financings through syndication with our Limited Partners and other investment partnerships. We invest in the following types of situations:

• Expansion financings for existing businesses
• Acquisition financings
• Management-led buyouts of growth companies
• Recapitalizations providing liquidity to one or more of the company's existing shareholders

Return to Top

Investment Criteria

South Atlantic invests in companies which demonstrate the following characteristics:

• Experienced Management Team. We believe our ultimate success will be determined by the quality of the people we back. We look for entrepreneurs of high integrity who own a significant interest in their business and have substantial experience in their industry segment.

• Serve a Large and Growing National Market. We seek to invest in companies serving $100 million or larger existing markets which are growing at 20% or better annually.

• Current Revenue and Proven Economic Model. We rarely invest in start-ups or early stage ventures. We prefer to provide expansion capital for companies with proven economic models seeking to expand their business.

• Domiciled in Florida, the Southeast or Texas. We focus on opportunities throughout the Southeast, as far north as the Baltimore, MD-Washington, DC area, as well as in Texas. Our portfolio companies may have substantial operations throughout the United States and abroad. All of our portfolio companies are headquartered in the Southeast or Texas.

Our Value Added

One or more of the South Atlantic professionals typically serve on the boards of our portfolio companies, bringing our experience and reputation to bear in building the business. While we do not play an operational role in our portfolio companies, our professionals offer substantial expertise in the issues surrounding maximizing value in private, high growth companies.

For example, we help our portfolio companies to:

• develop a financial strategy and arrange additional financings
• formulate business strategy
• recruit additional management, board members, service providers and corporate partners
• devise compensation and incentive programs for key employees
• negotiate and advise on mergers and acquisitions

Return to Top

The Investment Process

South Atlantic welcomes unsolicited business plans from entrepreneurs detailing opportunities which meet our investment criteria. We also encourage referrals which meet our criteria from investment bankers, attorneys, accountants, consultants and other service providers. While a formal business plan is not required, we do ask that an investment proposal contain the following:

• Detailed biographies and background of the management team and current owners
• Full description of the opportunity, including analysis of the economic model, competition, size and projected growth of the market and amount of capital needed
• Historical, year-to-date and projected income statements, balance sheets and cash flow statements for the business

Return to Top

Our Partnership Value System

• We are honest in our dealings with others.
• We deliver what we promise in our business and personal relationships.
• We always demonstrate commitment and diligence in our efforts.
• We are committed to achieving excellence in all that we do.
• We are committed to a team approach. Team members think in terms of "We", not "I".
• We are fair and evenhanded in our dealings with others.
• We have a sense of urgency on matters related to our business.
• We are "easy to do business with".