GMP seeks to partner with capable, high-integrity Search Fund entrepreneurs and owner-operators who have proven experience and a track record which support the opportunity to create significant value in a properly conceived and structured new business investment. Both GMP and its individual partners invest in each transaction. GMP will take an active operating role if required, while assisiting to architect a high growth revenue model in partnership with management.
GMP prefers investments in profitable, later stage businesses which can benefit from a new or strengthened management team, a refocused growth model and/or a realigned capital structure. We rely heavily on our Search Fund partners to identify, screen and qualify attractive new investment opportunities. Typically, these businesses have the following characteristics:
- Participation in a well-developed, stable and growing industry that is not subject to rapid technological change or large demand swings;
- Proven products or processes, well-positioned in their markets, with key competitive advantages; and
- A proven track record of profitability, with the potential to grow revenue organically or through acquisition.
However, one or more of three primary factors may be absent from these businesses, which create opportunity for GMP and its owner-operator investors:
- Management depth or experience is lacking for a variety of reasons, including generational change, market evolution or change of control transactions - management buyouts, divestitures, recapitalizations, etc.;
- Financial resources are insufficient or the capital structure too encumbered to provide for growth and value enhancement; or
- Strategy or market positioning has led to a correctable underperformance in financial results.
In these types of situations, GMP possesses a unique combination of operational and financial expertise, as well as a vast network of human capital connections, to assist our partner entrepreneurs and co-investors realize significant investment returns.