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Azalea Capital seeks to create significant shareholder wealth while minimizing many of the risks inherent in private equity investing. The key steps to execute our strategy are to: Invest in basic industry firms with established revenues and cash flows.We invest in businesses with a successful history of operations and established products or services. The company should have a defensible market position where there is a low risk of technological obsolescence. Invest in operating firms in the lower end of the middle-market in the Southeast.Operating companies are what we and our investors know. The lower middle-market is attractive to us as we believe it is underserved, therefore presenting more of a value opportunity than the higher end of the middle market that is highly sought, by both larger strategic and financial investors. The Southeast is our geographic focus as it is a well-diversified region of the country that we know extensively and can readily access. We spend a great deal of time developing strategy, building management teams, and monitoring performance, which we believe can best be accomplished in person. Invest in partnership with management.We are actively involved in each investment we make and provide strategic operating and financial guidance by participating in board level meetings and regularly reviewing operating and financial performance. However, we do not seek to operate our portfolio companies on a day-to-day basis. We believe that can best be accomplished by a seasoned, talented, and committed management team that is financially incented to build shareholder wealth in the business. Utilize a flexible approach in structuring our investments.Each investment opportunity requires a unique strategy for the capital needs of the business and its ownership. Therefore, we maintain a flexible approach to structuring transactions. In addition to investing equity in the business, we typically source senior and mezzanine capital from our network of relationships to prudently capitalize each of our portfolio companies. We structure the balance sheet to enable the Company’s management team to focus on operating the business for long-term value. |
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Why Azalea?
“Azalea Capital is a valued member of our organization, both as investors and advisors. They have been a major reason for our success since the inception of our business. I highly recommend them to any growing small business because they understand and help you focus on ‘the big picture’.”
Jon McClure, President
ISO Poly Films, Inc.
Ernst & Young Entrepreneur of the Year 2002 – Southeast Region Read More >>