Rainbow Capital

Rainbow Capital, LLC is a private equity investment firm that focuses on “control investments” in the pre-middle market and smaller middle-market companies. We are a “fundless” or “independent” sponsor and, as such, raise capital on a transaction-by-transaction basis from our own resources and those of individuals and institutions closely tied to the firm. Working in conjunction with existing management, Rainbow Capital provides liquidity and growth capital to shareholders and companies respectively, through acquisitions and leveraged recapitalizations. Our target companies have a strong, defensible niche, reliable cash flow, predictable capital expenditures, and present opportunities for significant growth. In addition to identifying attractive business opportunities, Rainbow Capital seeks outstanding management teams to partner with in achieving financial and operating goals. Thus, transactions are structured with operating management owning a significant portion of the portfolio company. Rainbow Capital adds value to management through active oversight and board representation and provides strategic assistance when and where appropriate. Our principals possess a variety of financial, operating, and transactional skills that are complementary to any operating management team. As private equity professionals, we avoid involvement in day-to-day operations except when needed. However, we help develop a focused strategic plan, identify possible add-on acquisitions and growth initiatives and provide prudent financial management. The primary objective of Rainbow Capital is to achieve long-term capital appreciation through majority ownership stakes in portfolio companies that meet many of the following criteria: - Strong management team in place and interested in equity participation; - Historical operating cash flow at a minimum of $2,000,000 after salary adjustments; - Stable operating history; - Strong, defensible market position in its identified niche; - Established products or services which are not subject to rapid technological change; - A sustainable competitive advantage through expertise, brand name, or distribution channels; - Geographic preferences include the Northeast, Mid-Atlantic states, and Florida; - Opportunities for growth.