Balance Point is an established provider of tailored, flexible capital solutions with demonstrated expertise within the U.S. lower middle market

Our customized investment structures address the specific needs of each transaction and provide long-term support for our portfolio companies, their management teams, and our investment partners

Investment Criteria

We have the flexibility to invest across different sectors as well as across the capital structure.

  • OUR SECTORS
  • Business Services
  • Consumer
  • Food & Beverage
  • Healthcare
  • Media & Information Services
  • Tech Enabled Services
REVENUES
$10M - $150M
EBITDA
$5MM - $30MM (or clear, near-term path to profitability)
INVESTMENT SIZE
$15M - $125M Debt / $15M - $75M Equity
DEBT PRODUCTS
Unitranche, First Lien, Second Lien, Mezzanine
EQUITY PRODUCTS
Structured Equity, Preferred Equity, Common Equity, Warrants
OWNERSHIP
Majority or Minority Stakes

Company Characteristics

Our flexible allocation model allows us to build a diversified portfolio of customized positions that generate differentiated solutions for our portfolio companies while also balancing risk and reward for our investors. The key characteristics on which we focus include:

Differentiated and Defensible Market Niches: We seek defensible market niches characterized by barriers to entry and high switching costs and look for businesses with a strong value proposition and clear competitive differentiation.

Growth Prospects: We target businesses with favorable industry trends and solid, long-term growth prospects.

Proven Management Teams: We look for experienced management teams or incoming operators with significant experience.

Cash Flow Stability or Near-Term Cash Flow Visibility: We target both businesses with a history of cash flow stability as well as high-growth businesses that have minimal EBITDA or cash burn but a clear line of sight to cash flow.

Transaction Types

Private Equity Sponsored Buyouts
Strategic Acquisitions
Refinancings
Management Buyouts
Leveraged Recapitalizations
Growth Capital