Investment Criteria

McCarthy Capital invests in the lower middle market. We seek to invest with management teams having material capital at risk and a vision for growth. These requirements allow us to be comfortable as a minority or majority owner. We invest across a wide variety of industries. Our capital is used to accelerate growth, provide liquidity for an owner, fund an acquisition, or sponsor a management buyout.

Since 1999, McCarthy Capital has invested almost $500 million in more than 35 companies.

Investment Criteria

McCarthy Capital typically invests $10 to $45 million of equity, either as a minority or majority partner, in a mix of growth equity investments, recapitalizations and management buyouts. We carefully review and pursue investment opportunities which meet the following investment criteria.

Company Characteristics

• Companies with annual revenue of at least $15 million

• Companies with annual cash flow of at least $3 million

• Companies with established, proven management teams

• Companies with proven business models, an established customer base and market share

• Companies with diversified customer base and product/service offerings

People

• Management with a significant ownership position in the company

• Management teams with a demonstrated track record for growth and profitability

• Management that has most, if not all, of their financial net worth invested in the company

Products/Services

• Products and/or services that are branded or proprietary

• Products and/or services that generate consistent operating margins

Markets

• Markets with favorable growth prospects – either through participation in growing markets, market share expansion, industry consolidation or innovative business strategies.

• Invest across a wide range of industries

Investment Preferences

• Equity investments of $10 - $45 million

• Majority or minority positions