- 1) What is a typical investment size?
- 2) Does LLR have an industry focus?
- 3) What stage investment is preferable?
- 4) Does LLR prefer to be a lead investor or co-investor?
- 5) Does LLR prefer minority or majority investments?
- 6) Does LLR seek operating control of the company?
- 7) What is LLR's geographic preference?
- 8) How long does it take to close an investment?
- 9) Who makes the investment decision? What is the process?
- 10) How does LLR work with a company after closing the investment?
- 11) What is the expected holding period for an investment?
- 12) What is the preferred exit strategy?
- 13) Is LLR an alternative to an IPO?
- 14) How does LLR differentiate itself from other investors?
We prefer to invest $10 million to $100 million in a given transaction and can underwrite equity investment of up to $100 million, for total transaction sizes of up to $250 million.
2) Does LLR have an industry focus?We have historically invested in business services, information technology, healthcare, financial services, education and other consumer services. We are opportunistic and open to review investments in any profitable, growing company, except for biotechnology and real estate.
3) What stage investment is preferable?We prefer to invest in companies with revenue of at least $20 million that are profitable and growing.
4) Does LLR prefer to be a lead investor or co-investor?We are comfortable serving as the lead investor but also invest with other investment firms and strategic investors. We will work with the company to build the proper shareholder base.
5) Does LLR prefer minority or majority investments?We are comfortable with both majority and minority investments.
6) Does LLR seek operating control of the company?When we purchase the majority of a company, we do not take operating control. We seek to back strong management teams who run their companies on a day-to-day basis.
7) What is LLR's geographic preference?Our primary geographic focus is the Mid Atlantic and the Eastern United States.
8) How long does it take to close an investment?We have an efficient evaluation and closing process that enables us to move quickly. In general, we can issue a commitment within 30 days and close the legal documents within an additional 30 days thereafter.
9) Who makes the investment decision? What is the process?We establish a four or five person team for each new investment opportunity to lead the due diligence process. The final investment decision is made solely by the six partners of LLR.
10) How does LLR work with a company after closing the investment?We serve as a partner and sounding board with the management teams. We provide assistance in many areas, including strategy, financings, acquisitions, management recruiting and partnering/liquidity opportunities. We also serve on the company's board of directors. A typical investment has four to six formal board meetings per year, but this is largely determined in partnership with management.
11) What is the expected holding period for an investment?Our holding period averages four to seven years. Our funds are raised with 10 to 12 year legal lives so we are have the ability to hold investments for the long-term.
12) What is the preferred exit strategy?We have no preferred exit. We have extensive experience helping the companies in which we invest complete both IPOs and sales/mergers as paths to liquidity.
13) Is LLR an alternative to an IPO?In the short term, LLR is an attractive alternative to an IPO. First, we can provide substantial liquidity to shareholders while an IPO will likely preclude significant selling. Remaining private may also give you the opportunity to round out your management team and hone your strategy before testing the public market. If you choose to go public later, we will help you put the processes in place to be a successful public company. We can also be very helpful with introductions to investment bankers, potential board members and other parties to maximize the opportunity for a successful public offering.
14) How does LLR differentiate itself from other investors?LLR pursues a very different strategy than other private equity firms. We are not a venture capital firm; our focus is on companies that are profitable at the time of our first investment. Similarly, we are not a traditional leveraged buyout firm, because we do not own majority positions in many of our portfolio companies. We have developed deep expertise in a select group of industries, and we work actively with management to build value. We have extensive industry and financial contacts, built over several years through our investments in rapidly growing companies.
Purchasing minority positions in management-owned companies is uncommon in the private equity world. We are comfortable with this approach and rely upon existing management to manage the company on a day-to-day basis. We apply this approach to all of our investments, even those where we have purchased a majority position.