Philosophy
The underlying philosophy of Blackhawk Partners’ investment approach consists of funding its private equity sponsored transactions with a combination of equity and debt.
Unlike most private family offices:
1. Blackhawk does not place money with other funds or investment managers;
2. Blackhawk is not in the money management, brokerage or securities business;
3. Blackhawk is a “strategic advisor” and “investor” in private equity transactions with a focus on the energy, industrial, technology and security sectors.
Strategy
Blackhawk underwrites the equity portion of a transaction, both directly and through a core group of associated family offices, on a deal-by-deal and no-fee basis, allowing its partner clients the opportunity to co-invest in its equity transactions. This model reflects our preference for investment discretion, with many high-net-worth investors themselves being hands-on business owners.
When debt financing is required to structure an optimum transaction, we can arrange it through a wide array of leading financial institutions with which Blackhawk maintains close relationships.
Although far from formulaic, Blackhawk’s private equity transactions share some basic features:
Once we make an investment, we work with the company’s management to revitalize the business, making it more productive, more competitive and more profitable. We achieve this by,among other things, streamlining operations, investing in future growth, and growing the top and bottom lines for the benefit of all stakeholders, including employees, customers, suppliers and stakeholder communities in which the business operates.
Blackhawk approaches business and investments as industrialists. We work closely with the management teams of companies that have strong business franchises, attractive growth prospects, leading market positions, and the ability to generate superior returns. We stay deeply involved in the operations of our investee companies, providing them with substantial resources over an average investment period of three to five years.
Investment Scope
Blackhawk is particularly interested in backing and co-investing with other investment groups, in private plays of established companies, throughout the United States, China, India- , select Middle East North Africa (MENA) countries and Latin America.
Blackhawk is neither a lender nor a securities broker dealer. We operate only as a strategic advisor and private equity investor.
We particularly like backing roll-ups, consolidations and build-ups, along with growth capital financing throughout the asset class categories. We are industry agnostic and happy to invest globally, as long as we are dealing with the right management team.
General Criteria
Deal Makers
1. Companies run by owners who have with significant skin in the game, i.e. cash of their own rather than “sweat equity”.
2. Companies that are growing rapidly, and with expectations that their growth will continue for at least the next three years; we aim for a minimum of 20% sales growth and 20% EBITDA growth per year.
3. Companies generating at least $10 million in revenue for the year in which they’re seeking funding.
4. Companies with a minimum free cash flow (EBITDA) of $2 million per annum at the point of our investment. No limit on the upside.
5. Roll-up Opportunities.
Deal Breakers
1. Capital raising for Funds.
2. Pre-revenue start-ups – we invest in businesses,not business ideas.
3. Films and motion pictures.
4. Greenfield, development and project finance opportunities.
5. Public companies.
Results
Everything we do is guided by a set of principles that define the firm’s character and culture; they have been at the core of Blackhawk since its inception. These enduring qualities are the shared convictions that we as partners bring to our professional and personal conduct; they are a fundamental strength of our business.
