ReignRock Investment Thesis

INVESTMENT PROFILE

ReignRock has the capacity to invest across all levels of the capital stack, concentrating on junior capital from equity and preferred investments to tranches of mezzanine financing. In addition, we have significant experience in sourcing senior capital from banks and other primary lenders.

Each investment is tailored to the specific needs of the opportunity, considering the company’s growth characteristics, business sector, type of transaction and current position within the industry cycle.

TRUSTED PARTNERSHIPS

We believe private equity investments begin and end with people.  When it comes to people, the foundation of our relationships is trust.  Partnerships based on trust require strong character qualities, a consistent track record of performance and core competencies to execute a shared strategic growth vision.

The management teams we partner with must also have a passion and commitment to maximize the potential of the business. Consequently, management must trust the ReignRock team to deliver the capital, value-added support and strategic resources needed to effectively partner with the company.

VALUE ADD


We prefer to invest in companies that have a little “hair” – the enterprise has a few material challenges that must be addressed to maximize its potential.


In turn, there must be a common belief that ReignRock can provide resources, relationships or expertise to assist the company in overcoming its unique set of obstacles.

RETURN ON INVESTMENT

For the benefit of the investors and the management team, we must see multiple paths to generating a significant return on invested capital.  That means the initial investment must be priced right and that the new, shared strategic growth vision is clearly obtainable.

In some cases, this could mean there is an underperforming or dormant asset that can be revitalized by the addition of new perspectives, strategies, tools, technologies, relationships or personnel.

INVESTMENT PARAMETERS

ReignRock prefers to invest in companies with the following characteristics:

  • $5 – $50M in revenue

  • Excellent leadership (though maybe not a complete team)

  • Proven product or proven market – ReignRock is willing to take execution risks, versus risks associated with unproven technologies, questionable markets or unpredictable legislative headwinds

  • Unique or defendable market niche

  • Recapitalizations

TRANSACTION TYPES

ReignRock prefers to engage in the following transaction types:

  • Family Successions

  • Management Buyouts

  • Growth Capital

  • Recapitalizations

  • Corporate Divestures

  • Complex and Special Situations