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Institutional-caliber investments in extraordinary companies

OUR APPROACH.

ARCU Capital focuses on quality businesses with revenues of under US$50 million and valuations of under US$25 million, investing across a wide range of industries, including healthcare, education, low-tech manufacturing, distribution and service sectors. The Firm seeks sound businesses with established operating histories, rather than startups and turnarounds.

Healthcare

Healthcare

Our related experience in the healthcare sector provides us unique insights in an evolving healthcare landscape. We've developed extensive knowledge, experience and industry networks through 10+ years of successful investing in healthcare services.

View our  Healthcare portfolio

Business Services

Business Services

ARCU Capital invests in a diverse range of businesses, from logistics services to industrial and support services. The Principals’ experience in many service sectors is deep, which allows them to identify opportunities for investment and to provide portfolio companies with high quality strategic advice.

View our Business Services portfolio

Financial Services

Financial Services

ARCU Capital has invested in financial services for the mid and low segments of the economy, initially focusing on lending businesses and over time expanding into insurance services. We have created value as an investor across a wide range of business models in the sector.

View our Financial Services portfolio

Energy & Industrials

Energy & Industrials

As investors in energy and industrials, we generally look to avoid businesses with significant macroeconomic and/or commodity exposure. Instead, we seek to make our returns through strong fundamental business performance, partnering with companies with strong growth prospects in relatively stable markets.

View our Energy & Industrials portfolio

INVESTMENT CRITERIA

 

Growth-oriented lower middle-market

We target companies that have good growth prospects, defensible market positions and attractive free cash flow conversion. We seek companies that may be constrained from realizing their full potential, and we are willing and able to spend the time and resources necessary to achieve such potential. We look to help our portfolio companies achieve or consolidate industry leadership through the development of product & service expansion, sales growth, operational optimization and acquisition strategies.

 

Flexible and disciplined investment approach

We have the experience and flexibility to invest across different types of private equity investment structures, including control buyouts, management buyouts, corporate carve-outs, build-ups, recapitalizations, growth equity investments and strategic minority investments. The firm employs conservative capital structures designed to drive aggressive investment in new initiatives, innovation, and business expansion.

 

Investment size

ARCU Capital seeks equity investments in profitable, growing companies with $5-30 million of EBITDA, and we selectively pursue smaller or larger platform investments. We routinely evaluate smaller strategic add-on acquisitions for our portfolio companies.  Since we put a substantial amount of time and energy into each investment, we also want to participate meaningfully in its success. We thus will expect to hold a meaningful position in the companies in which we invest. In any case, we expect to be the lead investor in our deals.

Strategic Focus. Differentiated Approach.

The firm seeks five critical elements in every situation — a fundamentally sound and durable business with a history of profitability; ability for ARCU Capital to impact investment results directly; unrealized growth potential and potential for strategic redirection; opportunity to drive operational improvements; and risk mitigation because of cash flow, intellectual property or other assets