Investment Criteria

Prospective Portfolio Companies:

  • Established and GrowingWe are attracted to companies that are involved in an exciting or unique market opportunity that has established itself as a growing industry leader with a defensible market position.
  • Led by Committed Management Teams - We seek to invest behind experienced and committed management teams.
  • Lower Middle Market - Generally, we target companies that have annual revenue of at least $10 million and EBITDA of at least $2 million. Exceptions can be made in certain scenarios.
  • No Seed or Start-Up Companies - We will not invest in newly formed seed or start-up businesses, project financings or real estate transactions.

Preferences:

  • Generalist Industry Approach - We have industry experience in niche manufacturing, business services, consumer products and services and healthcare services but are open to a wide variety of industries.
  • National Geographic Approach - Typically, we will pursue opportunities in the Southeastern and Midwestern United States but will invest in opportunistic transactions across the United States and currently have portfolio company investments from Florida to Washington.

Transactions:

  • $3 million - $7 million - Typically, we seek to invest $3 to $7 million per portfolio company. Investments can be above and below the target amount and can be staged.
  • Sole Investor or Co-Investor - DSV can participate in and/or facilitate larger junior capital financings up to $25 million through our strong network of co-investors.
  • Flexible Capital Structure - We typically provide both equity and subordinated debt in our transactions and have the flexibility to create the  most effective and efficient capital structure.
  • Variety of Transaction Types - We will participate in change of control transactions, management and leveraged buyouts, recapitalizations and expansion/growth financings.
  • Sponsored or Unsponsored - We will participate in sponsored transactions (including "fundless") as well as unsponsored and management-led transactions.