Deal Origination · Screening
Deal Screening & Origination Funnel
Fund IV lifetime · 0.8% close rate from initial review
Investment Thesis
Disciplined Origination: Quality Over Quantity
Our screening framework prioritizes businesses with defensible market positions and predictable cash flows. The 0.8% conversion rate from review to close reflects disciplined underwriting — we pass on 99%+ of opportunities to concentrate capital in high-conviction investments.
Implication 1
38% of closed deals sourced proprietary — yielding lower entry multiples and reduced competitive pressure vs. bank-led processes.
Implication 2
4 of 8 screening criteria are hard requirements — any miss on EV, EBITDA, margin, or management is an automatic pass.
Origination Funnel (Fund IV Lifetime)
Opportunities Reviewed
847
Passed Initial Screen
142
17%
NDA / CIM Received
68
48%
Management Meeting
31
46%
LOI Submitted
14
45%
Closed / Portfolio
7
50%
Investment Screening Criteria
4 required, 4 preferredEnterprise Value
$150M – $750M
Sweet spot for platform + bolt-on strategy
Required
EBITDA
$15M – $60M
Sufficient cash flow to service leverage and fund growth
Required
EBITDA Margin
> 12%
Indicates pricing power and operational efficiency
Required
Revenue Growth
> 8% CAGR
Organic growth reduces dependence on multiple expansion
Preferred
Customer Concentration
Top 10 < 40%
Diversified revenue base reduces exit risk
Preferred
Recurring Revenue
> 60%
Predictable cash flows support higher leverage and valuations
Preferred
Market Position
#1 or #2
Market leaders command premium exits
Preferred
Management Team
Retainable
Operator-led thesis requires stable management
Required
Deal Source Mix (Fund IV)
7 closed investments38%
Proprietary
3 investments
Direct relationships, proactive outreach
28%
Bank Process
2 investments
Competitive auctions, banker-led
22%
Relationship
1 investments
Industry contacts, operating partners
12%
Auction
1 investments
Broad auction processes