SGP’s investment approach, anchored by our One-Stop Buyout® structure, makes us the ideal partner for niche market leaders in the lower middle market.

Structure

SGP’s investments are structured as One-Stop Buyouts®. We provide all of the capital necessary to close a transaction (via unitranche term debt and control equity). No third-party debt is required. Our approach greatly increases the certainty of closing a transaction while simultaneously simplifying the process. Additionally, the friction and inefficiencies that exist within traditional private equity capital structures are eliminated, allowing management teams to manage their business, not their capital structure.

Certainty & Simplicity of Closing

By providing the entire capital structure, SGP has no financing contingencies in its transactions, greatly increasing the certainty of close, while also simplifying and streamlining the diligence process. The added complication of having multiple third-party lenders perform additional due diligence is eliminated.

Post-Closing Alignment & Efficiency

With SGP providing all the capital in a transaction, there is only one capital partner and no conflict between lenders and owners, creating complete alignment towards growing the enterprise value of the business. We make life easier for our management teams.

Criteria

SGP exclusively focuses on niche market leaders within the lower middle market. We believe that companies with leading market share have sustainable competitive advantages, allowing them to generate long-term growth and profitability without the risk factors found in highly competitive and fragmented markets. SGP invests in niche market leaders within the business services, consumer, distribution and light manufacturing sectors.

Key Characteristics
  • $2 – $15MM of EBITDA

  • Compelling market share within a geographic, product, or service niche

  • History of steady cash flow

  • Low capex and net working capital requirements

Sector Focus
  • Consumer products or services

  • Business products or services

  • Distribution 

  • Light manufacturing

SGP exclusively focuses on niche market leaders within the lower middle market. We believe that companies with leading market share have sustainable competitive advantages, allowing them to generate long-term growth and profitability without the risk factors found in highly competitive and fragmented markets. SGP invests in niche market leaders within the business services, consumer, distribution and light manufacturing sectors.

Key Characteristics
  • $2 – $15MM of EBITDA

  • Compelling market share within a geographic, product, or service niche

  • History of steady cash flow

  • Low capex and net working capital requirements

Sector Focus
  • Consumer products or services

  • Business products or services

  • Distribution 

  • Light manufacturing

SGP exclusively focuses on niche market leaders within the lower middle market. We believe that companies with leading market share have sustainable competitive advantages, allowing them to generate long-term growth and profitability without the risk factors found in highly competitive and fragmented markets. SGP invests in niche market leaders within the business services, consumer, distribution and light manufacturing sectors.

Key Characteristics
  • $2 – $15MM of EBITDA

  • Compelling market share within a geographic, product, or service niche

  • History of steady cash flow

  • Low capex and net working capital requirements

Sector Focus
  • Consumer products or services

  • Business products or services

  • Distribution 

  • Light manufacturing

Partners
Business Owners & Management Teams

SGP’s investment approach is structured to provide maximum flexibility to businesses while enabling a significant degree of alignment among all parties to drive long-term success.

Independent Sponsors

The SGP team has a long and successful history of partnering with Independent Sponsors.