Investment Strategy

 

Our Approach: We seek superior medium- and long-term returns by investing in opportunities that are underserved by capital markets. We take a hand-on approach to relationships; we give portfolio companies an infusion of capital, mentor their management team and give them time to deliver results. Our advisory panel — entrepreneurs with hands-on experience running successful private businesses — offers continuous support to the management team of each portfolio firm.

How We Invest: We back a diverse group of small- and medium-sized, privately held firms with a record of solid earnings that need capital and advice to propel them to the next level. We invest in all manner of firms — that can mean taking equity in biotech and medical device companies, investing in disruptive technology, or taking part in a debt offering from a food manufacturer adding an organic line of products. We also invest in such things as commercial real estate, distressed debt and in some start-ups. Opportunities often come via the professional network of our investment committee members and from the connections of our advisory panel.

How We Communicate: Effective communication is critical to the long-term success of every investment. Our portfolio companies must adhere to our Investor Bill of Rights, which demands regular updates of both positive and negative news. Likewise, Group Capital shares detailed performance data with investors, in keeping with Securities and Exchange Commission rules.

How We Allocate: We invest in equity, debt, notes, and royalty based instruments, with diverse return expectations, risks and challenges. We retain up to 15% of funds in cash to give portfolio managers flexibility to take advantage of time-sensitive opportunities. Since short-term volatility in our polled investment fund is high, investors should be prepared to hold investments for five years or more. Alternative investments seeking higher returns carry considerable risks. Group Capital’s investment committee works to mitigate those risks by following a well-defined investment process and by undertaking rigorous due diligence of every potential investment.