Investment Criteria

Alpha Capital Partners is in the business of providing equity capital, which is often critical to the success of a growing company or buyout. However, the support and value, which Alpha provides to entrepreneurs, extends beyond funding. As members of the board of directors or in direct consultation with management, Alpha Capital Partners principals and CEO Advisors can contribute to strategic planning, financing and major operational and marketing challenges of the company. Alpha Capital Partner’s experience with growing small businesses and its network of contacts, including those of its CEO Advisor Group, can be an important resource to the managers of the enterprises it finances.

Recently, Alpha has been very active as a value-added investor by investing through one of its primary portfolio companies, NM Group Global LLC (NMGG). Alpha Capital Partners and NMGG work side by side in acquiring U.S.-based niche manufacturing firms that can benefit from NM Group Global’s international reach. As a holding company for manufacturing firms, NMGG seeks to actively assist its affiliate and daughter companies in both lower cost off-shore sourcing and also marketing industrial products in rapidly growing overseas markets like China, Russia, and Eastern Europe as well as in the traditional established markets of Western Europe and Japan.

Types of Business: For private equity financings, Alpha Capital Partners targets businesses generating revenues from $15 to $100 million and invests primarily in manufacturing and value-added distribution businesses. In addition, Alpha Capital Partners will consider consumer-related investments including consumer products, retailers and restaurant chains where Alpha has particular industry experience.

Alpha Capital Partners does not invest in start-up or early stage enterprises, except where proceeds are used for acquisition purposes.

Size of Investment: Alpha Capital Partners will invest $500,000 to $5,000,000 in an enterprise. The firm often is a lead investor or an active participant in multi-investor financings of $2.0 to $15.0 million. Alpha Capital Partners will arrange co-investment capital including capital from its Limited Partner group.

Form of Investment: Each investment is individually structured to fit the needs of the situation. Alpha Capital Partners normally invests in preferred stock or subordinated debt with associated equity. Other investment vehicles will be considered, where appropriate. Alpha Capital Partners will consider both control and minority investment structures.

Investment Term: Generally, Alpha Capital Partners expects to be an investor in an entity for two to seven years.

Important Factors in Evaluation of Investments: The evaluation of an investment opportunity places emphasis upon:

  • The experience, capability, integrity and energy of management
  • The competitive advantages of the product or service
  • The market to be pursued, which must be of interesting size or an attractive niche
  • The anticipated rapid growth of value of the enterprise
  • The ability to exit and realize the value of our investment