Sterling Atlantic Partners LLC

Sterling Atlantic Partners LLC

Sterling Atlantic Partners LLC

Overview
Headquarters

22287 Mulholland Highway,Suite 265,Calabasas, CA 91302-5157

Type of Company

Private

Industries

Private Equity & Venture Capital
Investment Services & Portfolio Management

Company Description

Sterling Atlantic Partners (SAP) provides growth and buyout capital to small- and mid-cap around the world. The firm seeks to actively partner with local institutions that have a strong local footprint and access to key domestic resources. They offer a variety of customized investment structures with the objective of providing institutional quality investment solutions to the mid-cap finance markets. SAP invests in both public and private companies.SAP's investments are not industry specific or geographically constrained. The firm generally targets cash flowing mid-cap service and manufacturing companies. When selecting investments, they begin with a review of the economic fundamentals and business drivers of a company. SAP then makes recommendations about potential investment structures and uses summary forms to assist the company in presenting the information from an institutional perspective. SAP then conducts preliminary due diligence and issues a terms sheet. They are able to close very quickly on investments in publicly-traded companies and can close rapidly on private companies that have their accounting and legal documentation in proper order. SAP strives to reduce the company's cost of capital by aligning investor and management interest. The firm makes growth capital and in publicly-traded companies.When considering growth capital investments in publicly-traded companies, SAP evaluates the quality of the company's management team, fundamental economics and business prospects. On non-US exchanges, SAP focuses on investments in companies with market-caps of $10 million to $500 million. For companies listed on US exchanges, SAP prefers to invest in companies listed on a national exchange (not OTCBB) that have market-caps less that $300 million. The firm has invested in almost every sector except for real estate stocks. SAP's investment philosophy is to invest, hold the stock it if performs well and leak the stock slowly into the market if it does not.When providing acquisition financing, SAP considers the enterprise value of the target as a multiple of its existing EBITDA. Acceptable multiples vary with industry and market conditions. The firm typically accepts higher multiples depending upon the acquirer's economic fundamentals and its liquidity.SAP also invests in the purchase of non-core assets. Then firm considers the enterprise value of the asset as a multiple of its existing EBITDA. SAP targets assets with existing EBITDA of $4 million to $50 million. The firm is industry and geography agnostic, although the majority of their purchases have been manufacturing and service operating divisions.The firm's investments in private companies include: growth capital investments, early-stage financings, direct listings/IPOs and shareholder cash-outs. SAP seeks to invest in private companies with strong growth prospects. They focus on cash flow and the growth opportunities that enhance it. For early-stage investments, SAP invests in developing companies indirectly by investing through a joint venture relationship formed with the company. SAP has particular expertise in cross border joint ventures, mainly in Asia and Europe. In addition, SAP invests in private companies that directly list on the Deutsche Borse or other cost competitive exchanges. The firm also provides cash-outs to the shareholders of private companies undergoing control transitions.SAP makes direct growth capital investments in companies with EBITDA greater than $3 million. The firm typically invests $3 million to $50 million per transaction. SAP is industry and geography agnostic and they prefer to invest in emerging market companies. The firm evaluates industry prospects, management quality and competitive positions. They often combine their investments with a direct listing on the Deutsche Borse or other exchange.For early-stage investments in companies with existing EBITDA less than $3 million, SAP often employs the pass through structure as an alternative for equity requirements of $3 million to $50 million. Again, the firm is industry and geographically agnostic. SAP looks for companies with strong management teams, proprietary niches and appeal to potential strategic partners. SAP believes that the pass-through structure is suitable for early-stage companies that have especially strong management teams or proprietary assets and which seek to raise capital without selling a controlling interest.SAP may also recommend direct listing/IPOs for companies that can develop aftermarket investor interest, which the firm feels is the key to stock trading volume and liquidity. They seek to generate interest first among investors who already know the company, then among investors who should know the company and lastly by momentum investors. SAP focuses on companies with existing EBITDA of at least $3 million or advanced approvals for a biotechnology company, strong management teams and a history of delivering superior results.SAP participates in cash-outs to shareholders based on a multiple of existing EBITDA. Most of these transactions involve small cap buy-out transactions. Although the firm is industry and geography agnostic, they tend to focus on emerging markets and out-of-favor service and manufacturing industries. SAP will buy from 51% or more at the seller's discretion. They invest primarily in companies with transaction values of $20 million to $200 million. SAP specializes in orphaned non-core subsidiaries of corporate parents, existing small-cap that lack institutional support and management-led recapitalizations of entrepreneur-owned companies.

Website
Board of Directors

Founding Partner at Sabre Capital Worldwide, Inc.

Paths to Sterling Atlantic Partners LLC
Potential Connections via
Relationship Science
You
Sterling Atlantic Partners LLC