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Investment Philosophy

At Deutsch Capital, we recognize that entrepreneurs and management teams have spent years building their businesses and they take great pride in their significant accomplishments. Selecting the right partner for the next phase of a company’s growth is an important decision that depends on much more than just capital. The reality is that there is no shortage of available capital for the right company and the right transaction. In over 30 years of investing in private equity, Mark Deutsch has raised equity from a wide range of sources including: committed private equity funds, pledge funds, institutional investors, family offices and high net worth individuals.

The significantly tougher decision to be made by entrepreneurs and management teams is to choose an equity partner who not only shares their unique vision for the future but also can help develop a strategy to get there. At Deutsch Capital, we spend the time necessary to understand the unique value of a niche business and the strengths of the entrepreneurs and management teams that have built their successful companies. We spend a meaningful amount of time with the entrepreneurs and management teams prior to making an investment so that all parties conclude that partnering with Deutsch Capital is the right fit. Once we make the decision to pursue an investment opportunity, we work diligently to expedite the closing.

In general, we work on one single investment opportunity at a time. This ensures that the transaction process is completed quickly and with a minimum of distractions to the company. After all, we want the entrepreneurs and management teams to remain focused on growing their businesses. After the closing, we work in collaboration with the entrepreneurs and management teams to implement strategic initiatives and future growth plans.

Skyline Windows project in New York City

Skyline Windows project in New York City

MM.LaFleur’s “Bento Box”

MM.LaFleur’s “Bento Box”

Investment Criteria

Investment Profile – Established Businesses

  • Lower middle-market focus
  • $10 – $75 million in enterprise value
  • $1 – $10 million in EBITDA
  • Positive historical cash flows
  • Both control and minority investments

Market Position

  • Defensible market position
  • Sustainable competitive advantage(s)
  • Significant growth prospects
  • High barriers to entry

Management

  • Successful history of driving value creation
  • Strong alignment of interests and equity ownership

Investment Profile – Early Stage Businesses

  • Niche focus
  • Vision for greatness and clear path to get there
  • Minority investments only

Industry Focus

  • Niche manufacturers
  • Business services
  • Building products