Investment for the future...
CEP’s principals raise private syndicate capital through contacts and affiliations and invest this capital into practical investment opportunities. Throughout the investment holding period (3-5 years), investors receive monthly, quarterly and/or annual distributions from the success of the held investment.
We focus our private equity investments on the acquisition of mid-size businesses, those with revenues between $2,000,000 and $50,000,000 and adjusted earnings before interest, taxes, depreciation and amortization of at least $500,000. Our interest is in companies that have the potential to grow internally or through acquisitions of complementary businesses.
We are seeking companies with strong positions in niche markets, or with clearly defined potential to create market leadership under our ownership. To this end strong financial performance at the time of acquisition is desirable for the platform acquisition. “Tuck in” acquisitions do not necessarily require such performance. We are comfortable acquiring companies in which new management or operational improvements are needed to realize their potential.
We will evaluate any opportunity, regardless of size, to build value in our existing portfolio companies through the acquisition of smaller businesses or product lines that further strategic objectives of companies we now own.
We do not acquire retail businesses, technology-based firms with heavy research and product development requirements, or service businesses that permit easy entrance of new competitors.
CEP is particularly interested in partnering with strong management teams seeking to acquire their own or another company. As a decentralized organization built on a strong entrepreneurial vision, CEP is a very congenial home to aggressive managers. We will provide the opportunity for managers to invest directly in acquired companies and to participate in equity-based incentive programs.
CEP, as a diversified company, is able to bring to those management teams both substantial financial backing and access to advice and assistance from CEP’s experienced operating executives.