Swander Pace Capital
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Our investment approach Beverage Company, Foodservice and Specialty Distribution equity investments
 

SPC's investment strategy is to create value by investing in growing lower middle-market consumer products companies with leading market positions and definable, defensible niches.

 
 

Our focus is on consumer products
Our focus allows us to develop an in-depth knowledge of the various industries of the consumer product sector and the key value drivers unique to each. As a result, we have a shorter learning curve in understanding and evaluating investment opportunities and are able to develop a quick understanding of companies and their markets. Our focus also provides us the ability to leverage information, experience, and management across our portfolio.

Lower middle-market growth focus
SPC generally targets companies up to $300 million in revenues that exhibit strong growth potential. We believe the lower middle-market to be particularly attractive as companies in this segment often provide significant value creation opportunities. By leveraging our industry experience and expertise, we are uniquely positioned to assist management teams to capitalize on these opportunities and drive profitable growth.

Valued partner to management teams
We are focused on identifying management teams and owners of existing businesses that are seeking a partner that can add value to their companies. Throughout our history we have successfully partnered with management teams with various goals and objectives, including:

  • Entrepreneurial management team seeking a partner capable of adding value and driving and implementing growth strategies
  • Professional management team seeking a partner skilled at identifying and integrating build-up opportunities
  • Family-owned business transitioning ownership from one generation to the next

"Industry team" approach
We have developed a unique and proactive deal sourcing program that has helped us identify a large number of attractive investment opportunities. We believe our industry team strategy is distinctive and highly effective, particularly given our focused investment strategy. Each industry team consists of two to three investment professionals who concentrate their efforts on building contacts, accumulating expertise and identifying and evaluating potential investment opportunities within a defined sector of the consumer products industry.

Ability to add value to portfolio companies
Post-investment, we actively develop our portfolio companies by working with management teams to create and implement focused revenue and profit growth strategies that leverage our industry experience, strategy consulting skills and resources. Due to our industry focus, we often have specific prior experience with other companies in the same categories as our portfolio companies and can help these companies benefit from this accumulated knowledge.

Portfolio synergies
Due to our industry focus, we frequently identify opportunities to facilitate sales and profit growth at portfolio companies through active collaboration and partnering across the portfolio. Our portfolio company CEOs meet annually at an offsite strategy session to build rapport and share specific ways to mutually create value. Examples of recent cross-portfolio initiatives include:

  • Market entry and new account strategy
  • Senior management network
  • Pooled purchasing of raw materials
  • Company-to-company business opportunities across the portfolio