Aleutian Capital Partners

Aleutian Capital is a private equity investment group focused on acquiring and investing in privately-owned companies in North America, with a particular focus on manufacturing, retail distribution, service businesses, and information technology companies. Aleutian’s principals have come from a complementary mix of operating, legal, management consulting, and finance backgrounds. Capital is differentiated among private equity forms by its long-term investing perspective. While other firms typically exit investments in two to five years, Aleutian seeks to build a portfolio of companies it intends to hold and grow over an extended period. Investment Criteria ACP seeks stable companies in non-commodity manufacturing, distribution, and business-to-business services. Leverage will be used within conservative limits to finance acquisitions. The firm may also co-invest as part of a syndicate in larger transactions that meet its investment criteria. The firm will acquire profitable companies with revenue between $10 to $200 million and EBITDA of at least $1 million and reflecting an appropriate margin for the industry. Acquisitions must also meet one or more of the following criteria: One or More of: ▪ Consistent positive cash flow during at least the past five years with EBITDA ▪ Mature, stable industry; business not reliant on new technology ▪ Fragmented competitive and customer markets, with consistent (relatively non-cyclical) demand for the industry’s products ▪ Opportunities for financial improvement (e.g., manufacturing or labor productivity enhancement, market expansion, scale efficiencies through add-on acquisitions, etc.) ▪ Diversified customer base; sales not highly dependent on one or a few customers ▪ Diversified supplier base ▪ No foreseen developments that could adversely impact the company’s performance (e.g., demographic changes, technology shifts) ▪ Access to knowledgeable and capable management ▪ Proprietary edge over competition ▪ Meets lender or institutional criteria for debt financing ▪ Profitable exit opportunities ▪ Acquisition multiple appropriate for size, industry, growth rate and risk profile ▪ In business of providing same or similar products and services for at least the past five years ▪ Positive cash flow for each of the past three years ▪ Employee turnover equal to or lower than the industry standard ▪ Opportunities for growth (e.g., geographic expansion, product or service enhancement, outsourcing, etc.) ▪ Experienced and knowledgeable management willing to stay for at least two years post-transaction ▪ Defensible market position Ideal target companies are those that, while already profitable, can benefit from a focused emphasis on operating efficiency, sales aggressiveness and, in certain cases, the application of IT or other established technology.