Investment Strategy: Small Cap Buyout
The Paul Capital Fund of Funds small cap buyout investment strategy focuses on investments in a select group of small cap buyout funds in North America. Small cap buyout funds, as the term is used by Paul Capital, are being raised by managers who are focused on buying companies with enterprise values of $300 million or less. Small companies that grow internally, that grow through transforming acquisitions, or that grow through restructuring create a sustainable increase in enterprise value and are not dependent on high levels of leverage to drive returns.
Paul Capital utilizes select criteria, a rigorous process based on our significant experience in the fund of funds business, and a long history of buyout relationships to select the best performing managers. The process starts with a large universe of buyout relationships and ends with a highly focused but appropriately diversified small cap buyout portfolio. The portfolio is complemented by co-investments and by investments in target funds obtained through the secondary market.
Small Cap Buyout Strategies
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