Criteria

Cotton Creek Capital targets investment opportunities in the lower middle market for companies seeking Solution Capital. Such situations primarily include first round institutional capital, corporate divestitures, and management-backed strategies where Cotton Creek Capital’s relationship-based investing and active post-closing support are most applicable. Typically, these transactions are precipitated by a transitional event where Cotton Creek Capital can provide solutions and expertise. Such situations could include generational transfers, asset diversification, capital constraints, need for increased management support or institutional oversight, divestitures of non-core operations, or simply owners or management teams seeking a new financial partner in support of a growth or expansion strategy. 

Cotton Creek Capital believes that lower middle market companies represent the most compelling investment opportunities and are best suited to the Firm’s operating strategy. Investments will be pursued throughout the United States with a specific emphasis on the Southwest where Cotton Creek Capital can capitalize on its regional relationships and historical market presence.

Cotton Creek Capital will proactively seek transactions with some combination of the following characteristics:

  • EBITDA between $5 million and $15 million with a history of stable financial performance andattractive cash flow dynamics
     
  • Strong market position in niche markets or opportunities in markets without a well-defined leader
     
  • Businesses experiencing growth-related constraints that cannot always be addressed with existing resources
     
  • Opportunity for earnings growth through a combination of revenue enhancement (product, service, and channel expansion) and process improvement
     
  • Proven management team or capable management team that can be supplemented with the Firm’s management relationships
     
  • Opportunity to enhance the capabilities of the whole by leveraging the unique strengths of each
     
  • Cotton Creek Capital actively pursues investment opportunities in sectors where the Firm has prior experience and/or has cultivated strong relationships with seasoned advisors and operating executives. Our investment interest and experience encompasses a broad range of sectors, including, but not limited to, the following:

Basic Manufacturing | Infrastructure | Specialty Chemicals

Waste Services | Food and Beverage | Transportation and Logistics

Business Services | Consumer Products | Value-Added Distribution

Healthcare Services | Building Products | Industrial Services