Twin Ridge employs a patient and proactive approach to investing and seeks to invest in opportunities where our assistance is desired from management teams who are looking for a partner to provide strategic and operational support to enhance value creation.
Although we will consider investing in special situations in a number of industries, we are primarily focused on opportunities that leverage off of our prior operating and investing experience base – consumer, distribution and retail. Given our investment sector focus, we are able to source unique investment opportunities by utilizing our operating industry relationships, our diverse investor base and financial intermediaries.
When making an investment decision, we are attracted to companies which perform well in good as well as difficult macro-economic environments, have continued growth potential as well as the opportunity to improve the existing base business. Significant focus is placed on equity preservation in a “downside” scenario and cash generation. The businesses we invest in have the following characteristics:
- Operate in attractive industries (fragmented, growing, perform well in good and bad economic cycles)
- High free cash flow generation
- #1 or #2 market share with a real reason to exist in the consumers’ mind
- Sell directly or indirectly to a large customer base
- Produce or sell less discretionary products (limits risk of capital loss)
- Significant whitespace for growth (new product lines, store growth, etc.)
- Ability to improve productivity of the existing platform, both top line and margins through multiple levers within our control