laptop-glasses-21-2000x464

WE ARE DIFFERENT

We were established and structured to effectively invest in and support growing lower-middle market companies.

 


 

Number 1LONG TERM: WE ARE NOT FORCED TO SELL OUR INVESTMENTS IN 3-5 YEARS.

Unlike many investment firms, we do not have a defined time horizon for our investment and are committed to creating value over the long term. Because we do not have institutional investors or utilize a fund, we do not have a ‘clock ticking’. Instead, our capital comes from our two partners and a select group of high-net worth entrepreneurs, executives, and individual investors. As a result, we have the luxury of time, capital, and patience to support the long-term growth objectives of our companies.

number 2GROWTH-FOCUSED: WE CREATE VALUE THROUGH GROWTH, NOT FINANCIAL ENGINEERING.

We invest in companies that offer meaningful organic and add-on acquisition growth opportunities. We use a modest amount of leverage and ensure that the financial structure does not inhibit the growth of the business.


number 3VALUE-ADDED PARTNERS: WE WANT TO ENHANCE YOUR CAPABILITIES, NOT DUPLICATE THEM.

We are not passive investors. We are passionate about partnering with our management teams to create value, but recognize that they run the day-to-day operations of the business. Our primary role is to be a resource for them by bringing analytical tools, industry insight, and years of experience working with small, growth-oriented companies. We have gone through what you’re going through. Our CEOs run our portfolio companies, but we are there to “roll up our sleeves” and offer our support whenever and wherever it is needed. Russell Square’s professionals bring a wealth of experience in operating and building businesses. More specifically, we can help:

    • develop and refine strategy
    • identify and help negotiate add-on acquisitions and partnerships
    • improve financial and operational measurement and reporting
    • develop sales and channel relationships
    • assess capital allocation and investment
    • design new compensation and incentive plans
    • recruit additional management resources
    • attract experienced executives to serve as valued-added advisers

number 4ALIGNED: WE ARE TRUE EQUITY PARTNERS.

We view each investment as a partnership with management and strive to align our interests. Russell Square will facilitate meaningful management ownership through direct investment and equity-based incentives. Both of the Russell Square partners make a significant personal investment in each of our acquisitions to demonstrate our commitment to the partnership and create a risk-return profile consistent with management. We think and act like business owners. Russell Square’s funding model ensures that management and its financial partner are aligned regarding decisions to keep building the business or consider investment realization. In addition, we are committed to maintaining a limited number of investments in order to ensure Russell Square can focus on each company individually.