Investment Criteria

Structure

Bessemer Investors invests across a wide range of situations and structures, including:

  • Majority or minority investments
  • Family or sponsor owned businesses, corporate carve-outs, and public-to-privates
  • Platform acquisitions as well as buy and builds
  • Primary growth capital or shareholder liquidity
  • Structured securities and PIPEs

Sectors

Bessemer Investors targets companies in industries that leverage our experience, network, and value proposition including:

  • Industrials
  • Business Services
  • Consumer

Industrials

Industrials

Business Models & Sub-Sectors

  • Process controls and equipment
  • Value-added distribution
  • Packaging
  • Aerospace and defense
  • Building products
  • Automotive aftermarket

Themes & Attributes

  • High cost of failure / downtime
  • Highly-engineered or “spec’d-in” products / components
  • Intellectual property or other hard-to-replicate advantages
  • Aftermarket parts and services revenue streams
  • Emphasis on safety, security, and/or increasing regulation

Business Services

Business Services

Business Models & Sub-Sectors

  • Insurance services
  • Facilities and support services
  • Testing, inspection and certification
  • Business process outsourcing
  • Environmental services

Themes & Attributes

  • Recurring revenue, predictable demand
  • Specialty / niche focus providing proprietary services / products
  • Emphasis on safety and security and non-discretionary purchases
  • Outsourcing gaining share of market
  • Enhanced cost benefit to customers and / or conversion of fixed costs to variable
  • Vendor consolidation

Consumer

Consumer

Business Models & Sub-Sectors

  • Residential Services
  • Food and beverage:
    • Equipment
    • Distribution
    • Ingredients
  • Restaurants, franchisors, franchisees, and dealership networks
  • Beauty and personal care products and services
  • Pet products and services

Themes & Attributes

  • Emphasis on safety, health, and wellness
  • Inelastic demand or affordable luxury
  • Strong brands with targeted audiences – platform for brand extension
  • Focus on customer experience

Size

Our flexibility and substantial financial backing enable us to pursue investments across a broad size spectrum. Our platform investments tend to fall in the following ranges:

  • $50 – $150 million of equity with significant flexibility to scale
  • $10 – $50 million of EBITDA
  • $75 – $500 million of Enterprise Value

Characteristics

Bessemer Investors targets businesses that exhibit one or more of the following attributes:

  • Proven, Differentiated Businesses
  • Defensible Market Position
  • Predictable Demand Patterns
  • Multiple Growth Levers
  • Strong Management

Proven, Differentiated Businesses

Proven, differentiated business models with attractive margins.

  • Highly-engineered, mission critical, or “spec’d-in” products and services
  • Low product / service cost relative to value or cost of failure
  • High return on invested capital and/or cash flow conversion
  • Compelling unit economics with potential to scale efficiently

Defensible Market Position

Strong, defensible market position in stable or growing end markets.

  • Secular tailwinds
  • Demonstrated ability to gain market share

Predictable Demand Patterns

Stable and recurring demand drivers.

  • Long-term contracts, non-discretionary products, high switching costs, and/or retention rates
  • Parts, consumables, and service revenue streams

Multiple Growth Levers

Identifiable levers for growth and/or enhanced profitability.

  • Suitable platform for accretive acquisitions
  • Positive, long-term organic growth
  • Margin improvement opportunities

Strong Management

Strong management teams with a clear vision for future value creation.

  • Experienced teams with a demonstrated track record of execution