Investment Criteria

Burch Capital Partner (“BCP”) will use a “Double Bottom Line” investment strategy to invest in companies that can provide market rate capital returns (First Bottom Line) to investors, while working with targeted companies to enable economic improvement in the inner cities in which they operate (Second Bottom Line).

Investments in housing, transportation and energy sectors. will be dictated by: (i) change due to demands for housing and innovations in connection to energy and technology (ii) changes in traditional sources of energy (iii) environmental and economic concerns of advanced engineered products and processes that are associated with clean and economical sources of energy (v) automotive, bus and other forms of transportation that support the increasing demand for clean and efficient energy (vi) other areas of investment will include: distributed generation energy (including solar and wind), housing, alternative fuel-powered transportation, environmental / efficiency technologies services and alternative renewable energy

BCP will focus on investing in niche sector manufacturers, value added distributors and service companies. There is business opportunity by focusing on early stage, growth, distressed, and trouble equity companies that generate jobs and promote economics The fund will invest in businesses whose social purpose is accomplished not only by the product or service they provide, but by who owns or manages the business, where it is located, or whom it employs. The investments intend to create jobs and capital formation in low-income areas, invest in minority- or women-led companies, and invest in economically depressed areas. Burch Capital Partner will use venture capital to accelerate innovation investing in a way that positively affects social impact, as well as its financial success. We strongly believe these two drivers—positive social change and a healthy financial performance—are inherently connected.

BCP will assist identified portfolio companies in achieving a “double bottom line”: that is, strong long-​term financial success in housing, as well as positive social, environmental and eco­nomic impact in the inner-city neighborhoods.

Target Transaction Size

Enterprise Value of $2.0 to $25.0 million

Annual Revenues of $1 million to $20 million

EBITDA of $250,000 to $10 million

Areas of Interest

The following is a representation of industries of interest:

Aerospace

Automotive

Engineered Products & Components

High Performance Composites

Housing

Types of Businesses

Niche manufacturers of differentiated products, components, and/or assemblies sold to industrial customers, value-added distribution companies generating gross margins in excess of 20%

Typical Investment Opportunities

  1. Experienced owners recapitalizing their company or in need of growth capital
  2. Incumbent management teams seeking a financial partner to support a buy-out from current ownership
  3. Seasoned operating executives seeking to acquire a firm where they can add value to an under-performing business

Types of Transactions

  • Recapitalizations –

Recapitalization with a minority position resulting in substantial cash proceeds to the investing company. A recapitalization offers numerous benefits to the owner and that is/are seeking liquidity but not buy out. These benefits include personal liquidity, continued equity ownership in an amount to suit your personal desires, facilitation of estate considerations, freedom from personal guaranties, preservation of a management team, ongoing control and corporate culture, and a financially strong partner with capital to fund future growth.

  • Management Buy-Outs (“MBO”)

A MBO is a transaction whereby an incumbent management team would partner with BCP to acquire the assets or stock of a company that is owned by a third party.

  • Divestitures or Spin-Offs

This is a transaction whereby an incumbent management team partners with BCP to acquire an “orphaned” or “non-core” division or operating company of a larger public or private company. Our experience has been that “orphaned” or “non-core” divisions and operating companies perform significantly better once they are freed from corporate bureaucracies and able to operate on a standalone basis.

Investment Structure

Investments are structured as common and/or preferred equity instruments and BCP will require a current return in its invested capital.

Acquisition  or merger with a penny stock company that is  publicly traded whose market for where securities are thinly traded that may be caused by a shift in business direction, change in market or industry in which they operate, or various other factors causing limited or no trading in stock Investment Approach.