Investment Criteria

Investment Philosophy

Given our investing style, we put a premium on open, honest, respectful, and collaborative partnerships.  Many of the operating executives and resources brought to bear in each of our investments are people with whom we’ve developed relationships in past transactions.  The partners of JMH invest significant personal capital alongside our limited partners and co-investors in EVERY transaction.  We approach the business issues and management decisions as individual owners of the company.

When JMH Capital is the Ideal Capital Partner

We have a long track record of working successfully with businesses to accelerate their growth.  Typically we seek companies that have a market-leading product or service, but are constrained for some reason from growing more rapidly or realizing better profitability.

The collaborative, “roll up our sleeves” nature of our relationships with management allows us to address a broad range of strategic, financial, and operational issues over the lifecycle of each investment.  We generally invest in fewer portfolio companies, and dedicate more of our personal time to each.  We use the experience we’ve gained as operators growing similar businesses, to help drive highly profitable growth, improve operating performance, and acquire complementary operations during our investment period.

Company Size $5 million to $150 million of revenue
Equity Investment Up to $25 million per transaction
Ownership Control, or joint-control with co-investors
Transaction Types JMH will consider a variety of transaction types and structures, customized to each situation and unique goals of the business owner.  Over its history, JMH has completed transactions structured as:

  • 100% buyouts
  • Majority recapitalizations
  • Corporate carve-outs
  • Management-led buyouts (MBOs)
  • Select minority and growth equity investments
Industries Niche manufacturing, business services, specialty distribution, and select restaurant, retail, and franchise concepts
Desired Characteristics
  • Strong customer value proposition
  • Differentiated product / service
  • Leadership in a well-defined geography or industry niche
  • Opportunities to accelerate growth, often via share gain
Unique Characteristics Though we welcome the opportunity to work with existing management teams, through our extensive network of operating resources we have the ability to embrace the following situations:

  • Retiring ownership that wants to exit the business quickly
  • Corporate spin-outs in need of executive leadership and new business infrastructure
  • Incomplete management teams in need of supplementation