“ Our guiding principles are instilled through board leadership and are a necessity in weaving the fabric of our portfolio teams.”

Introduction

Our investments span operating companies in a variety of industries as we look to partner with talented entrepreneurs who are responsibly growing their businesses. BlueArck plays a vital role in directing strategic growth of its investments through patient capital and operating support. We are a partner in the truest sense and take on the role of a teammate looking to add value when necessary, not only through access to capital but also through strategically deployed operating support. Our portfolio companies benefit from our national reach, varied operating experience and strength in strategic business administration.

BlueArck’s operating experience spans various industries and threads together commonalities of business models to seek out the best path forward. Operational improvements of our portfolio companies can include growing revenue, expense management systems and benchmarking, procurement, leadership and infrastructure development, IT implementation, and culture-driven change management. Culture is extremely important to us, not only within our operating group but also for our portfolio companies. Our guiding principles are instilled through board leadership and are a necessity in weaving the fabric of our portfolio teams.

BlueArck establishes platforms through proactive sourcing based on intensive research. While the auction process cannot be entirely avoided, particularly for follow-on acquisitions, we believe our unique attributes allow us to build bridges to successful transactions. Strong relationships with transactional intermediaries add to our pipeline and alignment with the ‘right’ opportunities.

We assess opportunities with awareness of our strengths and weaknesses – we only pursue opportunities if we believe our knowledge base can rapidly expand value to improve operations and create more durable brands. We then test that thesis on a continuous basis throughout the life of the investment to ensure resources are adequately aligned with growth objectives and investment goals are achieved over the long term.

Value Creation

Our successes have always closely correlated with the people behind any given investment – finding the right management teams with which to partner comes down to cultural fit with BlueArck’s style and core values. It is a critical component of our investment process and due diligence as our portfolio continues to expand. We have a high success rate in finding talent and grooming leaders to perform at the highest level.

We build relationships with our portfolio company teams that are rooted in our core principles and continuous oversight model. Being a CEO is a lonely position and our support mechanism allows for collaboration and support to ensure an appropriate level of risk management catered to each management team. Our experience as entrepreneurs also affords us a unique perspective having faced many of the same challenges as our CEO group, allowing us to provide the necessary support needed to rapidly scale revenue and drive cash flow.

Companies succeed when they have the tools and infrastructure to prosper – with patient capital and operational support, BlueArck portfolio companies are set up to yield terrific returns.

Due Diligence Process

We have a consistent and intensive approach to due diligence that dives deep into existing company operations and practices as well as future growth potential. Understanding the past unlocks key insight to allow for reliable risk management as well as areas of value creation. Using conservative assumptions is foundational to our ability to manage risk, after all, strong investment returns are grounded in prudent risk management. Tight attention to detail spans through all aspects of due diligence, forming the basis of our approach to business – nothing is taken for granted.

Transactiontypes & criteria

Transaction types

Shareholder Buy-Outs:

BlueArck Private Equity seeks opportunities to lead transactions where an existing shareholder requires liquidity.

Management Buy-Outs:

The firm is looking to participate as a majority equity participant with a strong management team already in place. We also have the ability to source and install management where situations call for succession.

Recapitalizations:

Situations where the primary shareholder(s) is (are) seeking a partial exit for tax, estate planning or de-risking purposes.

Divestitures of Non-Core Operations:

Where a large enterprise is seeking liquidity through divestiture of a non-core asset.

Venture Funding:

Our firm provides venture capital funding to Knowledge Based Industries (KBI) on a selective basis.


Acquisition candidates should have one or more of the following characteristics:

Acquisition Criteria

Annual revenues of between $2 million and $75 million with EBITDA between $0.5 million and $10 million;

Established business with a profitable track record, history of stable cash flows and recurring revenues stemming from long-term customer relationships;

Lives in a stable industry that has good growth potential; and

Diversified supplier and customer bases.

BlueArck's Investment Mandate

BlueArck Private Equity is open to working with Management teams that are looking not only for growth capital but ideas and expertise in managing a business and creating growth strategies. We are not restricted by geography, industry or transaction structures.