HBST Clarity

Capital injection will be used to expand the horizon of our financing options for portfolio companies

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HSBT Clarity (the “Fund”) is a private equity fund that focuses on partial equity acquisitions of small manufacturing companies that operate in highly competitive areas and have strong cash flow track records.  Our Fund identifies investment opportunities that have latent synergistic value (i.e., companies for which we can create value by increasing revenue streams and reducing operational and production costs) and package them in projects.  These projects will be composed of multiple portfolio companies within the same line of business. 

Our team will improve our portfolio companies’ revenue streams by leveraging higher volume discounts and higher workstream capacities, which are achieved by combining the capabilities of otherwise disjointed businesses.  In addition to creating value, our Fund offers a palatable solution to business owners who have profitable businesses and who are looking to retire.  Small business owners do not have access to a robust market to cash out the equity that they have built over the years.  Our Fund allows these owners to cash out partially while helping us grow their business (thereby securing a successful cash exit down the road).  We accomplish this by securing seller-financing options with the owners while acquiring control over our target businesses. 

Businesses that operate in highly competitive areas have latent synergistic opportunities with other competing small businesses.  Bigger and more established companies can often leverage their size and status to obtain more robust revenue streams and better rates with respect to inputs (i.e., lower payables).  We will allow our target business to have access to these opportunities by leveraging their strong financial records and the accumulated experience of the owners and our investment team. 

Our Fund will obtain small acquisition loans from (desirably) decentralized local banks that are in a lending position.  These loans will allow us to acquire controlling equity in our target companies while ensuring that all parties (i.e., us, bank, and owners) have “skin in the game.”  We plan to interview financial institutions to ensure we establish a strong relationship with the right entity.  We are open to private financing, but we prefer lending for our first few projects.  

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HBST Clarity is no longer seeking funding.