Value Creation · Attribution
Value Creation Analysis
Total value created: $728M across 7 portfolio companies
Investment Thesis
Operational Alpha Over Financial Engineering
Over 60% of Fund IV value creation is driven by operational improvement — revenue growth and margin expansion — rather than leverage or multiple arbitrage. This philosophy produces more sustainable returns and reduces dependency on favorable exit markets.
Implication 1
Revenue growth (organic + bolt-on) is the single largest value driver at 35%, reflecting successful platform consolidation strategies.
Implication 2
Multiple expansion of 1.2x average across the portfolio validates that scaled platforms command premium exit multiples.
Value Creation Attribution
Revenue Growth
35% · $255MCross-sell expansionNew market entryPricing optimization
Margin Expansion
25% · $182MProcurement savingsAutomationShared services
Multiple Expansion
22% · $160MPlatform premiumScale re-ratingSector rotation
Add-on Acquisitions
18% · $131MBolt-on M&ATuck-in synergiesGeographic expansion
Value Creation by Portfolio Company
7 companies rankedNorthStar Physician Partners
Healthcare Services
EBITDA Growth
+81%
Multiple Δ
+2.1x
Value Created
$220M
MOIC
1.98x
Sentinel Security Technologies
Industrial Tech
EBITDA Growth
+73%
Multiple Δ
+1.9x
Value Created
$155M
MOIC
2.00x
Heritage Benefits Group
Financial Services
EBITDA Growth
+50%
Multiple Δ
+1.9x
Value Created
$150M
MOIC
1.81x
Cascade Data Systems
Technology
EBITDA Growth
+57%
Multiple Δ
+2.0x
Value Created
$108M
MOIC
1.77x
Atlas Manufacturing Solutions
Industrials
EBITDA Growth
+25%
Multiple Δ
+0.9x
Value Created
$45M
MOIC
1.35x
Summit Behavioral Health
Healthcare Services
EBITDA Growth
+12%
Multiple Δ
+0.8x
Value Created
$30M
MOIC
1.18x
Pacific Coast Logistics
Industrials
EBITDA Growth
+17%
Multiple Δ
+0.4x
Value Created
$20M
MOIC
1.19x
VALUE CREATION PHILOSOPHY
Granite Peak targets 60%+ of value creation from operational improvement (revenue growth + margin expansion) rather than financial engineering. This approach is more sustainable and less dependent on favorable exit markets.