We focus our efforts on a small number of investments We fundamentally believe that focused efforts drive success and lower middle-market companies typically need help to achieve their full potential. We make only one new platform investment every 12-18 months and take an active, consultative board-level role in helping our companies achieve their business plans. This focus drives better business performance and financial results which, in turn, creates higher investment returns.
We are value-added equity partners We understand, first-hand, the demands of running a business in a challenging, competitive environment. Tillery's Partners are experienced at running businesses, with full profit and loss responsibility, as CEO / President (we know what its like to have to make the sale and having to meet a payroll). This experience allows us to be genuine business value-added equity partners, not passive second guessers or "Monday morning quarterbacks". We have the knowledge, experience and tools necessary to help our companies implement their business plans. We work closely with every company, but at the board level. We can be more active, if necessary or if requested by the company.
We add a level of sophistication generally missing within lower middle-market companies Management teams are experts on their industry, customers and vendors; we are experts at broader business management.
We believe in significant employee ownership We strive for the management team and key employees to own 20-40% of the company. This cultivates an ownership mentality throughout the company.
We have the benefits of being a family office We are business builders, not business flippers constrained by a limited life fund. We have the flexibility to focus on and manage our companies for the long-term and to do what is best for the company, its shareholders and its employees. We are also comfortable investing in businesses that have the imperfections and limitations smaller businesses typically have.
We personally invest a significant amount of the required equity Tillery's Partners are investing a significant amount of our own funds. Most private equity firms are investing other people's money and the general partner typically only invests 1% of the equity capital in each deal.
We approach every investment as a true partnership with our management teams and structure and manage each investment accordingly.