SHV’s investment approach is simple. Great companies for great returns.
We typically invest in high growth companies in the Micro to Lower Middle Markets generating $2.0 to $50 million in annual revenues with proven commercial technologies or services mitigating venture or technology risk. SHV is industry agnostic and prefers investments in the Gulf Coast Region, but can invest anywhere in North America.
Being affiliated with family offices allows us to be flexible with our terms and facilities. For example, while we specialize in leading equity investments, we can augment equity with debt, convertible debt, project finance or invest alongside our affiliated private equity funds to protect downside risk and generally provide a cheaper cost of capital to the company. Our typical initial bite size ranges from $300K to $3.0 million, with the potential to syndicate up to $10 million. We lean towards making smaller investments upfront, and make larger follow-on investments as the company grows. SHV tends to lead or co-lead investments, but can be passive. We can also invest alongside private equity funds to diversify and provide an additional source of capital to the company.
In Summary
- Target high growth companies generating $2.0 to $10 million in annual revenues, but can go up to $50 million.
- Typical initial bite size of $300K to $3.0 million; syndication up to $10 million.
- Make larger follow-on investments as companies grow.
- Minimal to Zero technology or “product fit” risk.
- Prefer Gulf Coast Region, but can invest anywhere in North America.
- Industry agnostic.
- Flexibility with terms and investment vehicles.
- Tend to lead/co-lead investments, but can be passive.
- Can invest alongside traditional private equity funds.
- Not looking to invest in third party funds.