{"id":2557,"date":"2014-02-05T14:04:05","date_gmt":"2014-02-05T22:04:05","guid":{"rendered":"https:\/\/masonmyers.com\/?p=2557"},"modified":"2015-01-28T12:58:38","modified_gmt":"2015-01-28T20:58:38","slug":"new-investment-fund-looking-for-business","status":"publish","type":"post","link":"https:\/\/masonmyers.com\/new-investment-fund-looking-for-business\/","title":{"rendered":"New $20 Million Investment Fund Looking for Profitable, Fast-growing Businesses"},"content":{"rendered":"

Greybull Stewardship, L.P., an investment fund, completed in January 2014 its $20 million round two capital commitments. Since the fund’s January 2010 inception, annual returns have realized 23 percent after fees. As a result, existing Limited Partners (LPs) increased their commitments and new LPs were added for the second four-year cycle.\"investment\"<\/a><\/p>\n

This fund is industry agnostic, focusing instead on lower middle market companies with between $1 to $3 million in EBITDA. Other criteria for the investment fund include strong competitive advantages, recurring revenue and management teams that hold significant equity in the businesses and plan to remain in place after an investment.\"greybull<\/a><\/p>\n

\u201cAccording to a Kauffman Foundation study, only 16 percent on the Inc. 500 list of the fastest growing private companies had venture capital backing, indicating there is a capital shortage in this sector,\u201d said Mason Myers, general partner of Greybull Stewardship. \u201cThe companies in which we have invested to date have reached a tipping point. Our capital infusion supported by new governance structures gives management the tools to expand into their fast-growing middle markets.\u201d<\/p>\n

Evergreen investment fund flexibility<\/h2>\n

The fund\u2019s evergreen structure is central to Myers\u2019 strategy of realizing long-term, cash-on-cash returns with maximum flexibility for business owners. Evergreen investment funds have the flexibility to exit investments based on what is best for the business, rather than because of restrictions created by a fund\u2019s limited life or other fund-specific limitations. Greybull Stewardship also focuses on generating returns by harvesting cash from annual profits through tax efficiencies in addition to the sale of investments. Such tax efficiencies are often well aligned with the objectives of portfolio company co-owners and management.<\/p>\n

\u201cI want founders and business owners to see Greybull Stewardship as an ideal co-owner of their growing, profitable company, just as Berkshire Hathaway is the buyer of choice for many great businesses that do not want to sell to an acquirer that will change things or a financial buyer that will sell the company a few short years later,\u201d said Myers. \u201cI have been a fan of Berkshire Hathaway philosophies ever since my high school years in Omaha, Nebraska. One of the lessons I took from Warren Buffett is to create a structure for Greybull Stewardship that makes this fund an investor preferred by the very best companies.\u201d<\/p>\n

Greybull Stewardship\u2019s growth portfolio includes:<\/h2>\n