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We typically make preferred equity investments of $5 million or more in our partner companies for capitalizing a geographical expansion, introducing a follow-on product or making strategic acquisitions. They must be profitable or have significant tangible net worth. We are industry-agnostic, but have a particular interest in organizations whose products and services are driven by demand within the following demographic trends:
- The aging and growth of the “Baby Boomer” demographic
- The coming of age of the “Echo Boomer” or millennial generation
- The growth of the Hispanic market in the U.S.
- The transient nature and decreased job tenure of the American worker
At Virtus, our objective is to facilitate entrepreneurship. Our experience in working exclusively with accomplished entrepreneurs combined with our numerous entrepreneur investors and partners uniquely enables us to assist organizations to reach the next level. Our investment focus mitigates risk by combining upside potential with downside protection. Specifically, Virtus looks to achieve a minimum 25% gross levered internal rate of return.
- Company revenues between $10 million and $250 million
- Profitable
- Domestic U.S. or domestic subsidiaries of foreign companies
- Preference for roll-ups and growth capital for geographical expansion or follow-on products
- Industry-agnostic but focused on demographic trends
- Improve operating margins
- Make a geographical expansion
- Introduce a follow-on product
- Introduce a strategic partner
- Execute a roll-up in a fragmented industry
- Enhance management team
- Virtus partners’ contribution
- Fiduciary/discretionary capital
- Syndicated ultra-high-net worth capital
- Syndicated institutional capital
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