Investment Strategy
The objective of Lovell Minnick Partners is to generate superior returns for our investors over an intermediate investment horizon through focused investments in the financial services industry.
Specifically, we target investments in asset management, financial product distribution, securities brokerage, banks, specialty finance and related business services. We achieve our goals by investing in companies that have significant growth potential and where we are aligned with management teams who are committed to increasing value through a variety of methods including internal investment, acquisitions, prudent use of leverage and expense rationalization.
We capitalize on opportunities by:
- Providing capital and industry knowledge in support of buyouts and recapitalizations;
- Applying our expert advice to evaluate and fund new product and service offerings, technology enhancement or marketing initiatives;
- Leveraging our market intelligence of acquisition targets to consummate acquisitions and capital investment on attractive terms; and
- Using our operational experience to develop firms into profitable properties that are attractive to strategic and financial buyers or that can become public companies.
Investment Opportunities
Partnerships Managed by LMP
Investment Size & Structure
We make equity investments between $20 and $100 million in each portfolio company and, with access to co-investment, we have completed transactions with values of several hundred million dollars. We invest in the following transactions:
- Divestitures by financial institutions;
- Management buyouts of private or public companies;
- Growth capital investments to support acquisitions and other expansion initiatives; and
- Recapitalizations where interests can be purchased from retiring or inactive shareholders.
Investment Criteria
The criteria we use to qualify appropriate companies for investment include:
- Experienced and motivated management teams with meaningful equity ownership;
- Significant long-term revenue and profit growth potential;
- Proprietary or differentiated processes, products, services or market position; and
- Multiple exit opportunities in either public or private markets.
Value Enhancement
We only invest in those firms where we can meaningfully enhance their value through our active involvement with management. We use our network and industry knowledge to assist portfolio companies by:
- Advising on strategic initiatives including new products as well as sales and marketing plans;
- Sourcing and executing merger and acquisition opportunities;
- Assisting in developing the executive management team; and
- Sourcing and facilitating the ultimate sale of the company.