Acacia Partners, LLC, an Austin, TX based private investment firm that invests only in family-owned and owner-operated companies, announced it has raised a committed capital fund. The fund’s structure will allow Acacia to maintain its unique advantages compared to traditional private equity of deploying indefinite capital and utilizing minimal leverage. Acacia was oversubscribed by existing investors for this fund. Acacia invests in companies seeking equity capital ranging from $20 million to $100 million with enterprise values between $30-$250 million.
Acacia will continue the investment strategy it has employed for the last six years of partnering with family-owned or owner-operated businesses to recapitalize companies with strong market positions and exceptional growth potential. Acacia’s investment strategy includes both majority and minority recapitalizations. The firm’s investment focus is to partner with business owners who are looking to roll a significant equity position back into their business and are seeking an alternative to the traditional private equity approach of utilizing significant leverage and having predetermined timelines for exiting the investment. The team will continue its strategy of being preferred partners to owners who value Acacia’s differentiated approach.
“We are extremely excited to evolve to a model with committed capital” said Brad Johl, Acacia’s Founder. “Over the last six years we have established an attractive niche in the market, and our goal was to raise a committed fund that did not require us to deviate from a strategy that has been working very well for us and our partners.”
Acacia has made four platform investments to date and is aggressively pursuing its next platform.
Acacia’s Differentiated Approach
* Focused on family-owned or owner-operated businesses
* Patient, long-term capital aligned with your company’s objectives.
* Conservative use of debt. We prefer to generate investment returns through growth and operational excellence rather than financial engineering. We are committed to using a maximum of 2x debt to EBITDA leverage on all investments.
* Commitment to maintaining the company culture post-closing. We hold a deep appreciation for the unique characteristics that give family and owner-operated businesses a competitive advantage, and we believe changing the company culture can diminish those advantages.
* Access to a vast investor network to drive valuable strategic introductions.
