Investment Profile
SIMMONS PRIVATE EQUITY ("SPE")
Our investment strategy is to identify attractive investments in the energy industry where the energy & power team has domain knowledge. Consistent with our approach, the criteria we use when we evaluate an investment typically include the following:
- Companies within the energy & power team established areas of industry expertise, namely the oil and gas services sector
- Commercial businesses with significant revenue and earnings streams (typically up to £7 million of LTM EBITDA) that are underpinned by strong back order backlogs
- Growth companies with high gross margins and strong cash generation but constrained in terms of resources (financial and/or human capital)
- An international and diversified offering across both capex and opex
- Companies that have built top-tier positions within growth and emerging sub-market verticals and possess technology, IP or other attributes that create barriers to entry
- Talented management teams capable of executing business plans with aligned equity incentives and appetite to become part of a larger group
- Adopt a ‘buy-and-build’ platform strategy, packaging the niche offerings of respective businesses to present a cohesive market-facing service offering
- Owner managers typically roll-over a significant portion of their existing stake into our platform vehicle
- No fixed exit term (other than life of the fund)
| Investment Criteria | |
| Size of investment: | Up to £10 million - possibly larger if a co-investment partner is involved |
| Stage of investment: | Revenue and profit generating |
| Industries: | Oil and gas services sector |
| Geography: | Worldwide remit |
| Target EBITDA: | < £7 million |
| Board representation: | Required for all investments |
| Typical holding period: | No fixed term apart from life of the fund |
| Type of transaction: | Focused on investments in equity and equity-linked securities that finance company growth. We also invest by participating in liquidation events and providing development capital, which meet our hurdles for growth potential and investor return. |