- Back talented management teams who stand to share meaningfully in
the rewards of success.
- Participate only in friendly, negotiated transactions.
- Invest in traditional businesses with solid fundamentals.
- Pursue investment opportunities that are likely to generate high risk-adjusted
rates of return.
- Target industries that correspond to our direct experience and ability
to add value.
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3. What is Sentinel's area of
focus?
We focus on investing in smaller, traditional middle-market
businesses in industries where we have relevant experience.
These include consumer products/services, business/marketing
services, and outsourced manufacturing. We target companies
with at least $6 million in annual cash flow and enterprise
values ranging from $25 million to $125 million. See Investment Focus for more
information about our investment criteria. Top
4. What is Sentinel's preferred
type of transaction?
Our greatest strength lies in helping established companies
reach the next level of growth. We prefer to invest in management
buyouts, recapitalizations, corporate divestitures, growth financing,
industry consolidations, and restructuring. Top
5. What is Sentinel's average
equity investment?
Our equity investments range from $5 million to $25 million
depending on the needs of the company and opportunity presented.
Our preferred range is between $12 million and $20 million.
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6. Does
Sentinel prefer to be the sole institutional investor or will
Sentinel co-invest with another private equity firm?
We choose to make a small number of large investments so that
we can bring real focus and commitment to each relationship.
As a result, we have been the sole or primary investor in most
of our transactions. We will invest selectively with other private
equity firms, however, and have done so in several instances.
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7. Does Sentinel always seek board
representation? Does Sentinel manage portfolio businesses?
Working with our portfolio companies at the board level allows
us to make the maximum contribution to their success. We deliberately
make a small number of large investments so we can commit considerable
time and resources to each company in our portfolio. Our investment
strategy yields one of the highest partner-to-investment ratios
in the industry, and ensures that our companies and management
partners get the attention and support they deserve.
We
do not interfere with the day-to-day management of the businesses
in which we invest, nor do our employees go on the payrolls of
these companies. As board members and shareholders, we act as
advisor and confidant to senior management on strategic matters.
In addition, we frequently help identify and advise on acquisitions,
optimize capitalization, and develop incentive compensation plans.
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8.
Who are Sentinel's investors?
Our investors are prominent institutional investors, foundations,
financial institutions, and high net worth families based in
the United States. Having forged a close and productive relationship
with these parties, we benefit from a two-way flow of ideas, information and contacts. In many
transactions, our institutional investors participate in various
layers of the capital structure and create important strategic
advantages for our management partners. See Investment Focus for more
information. Top
9. What is the best way to reach
someone at Sentinel? Do I need an introduction?
We welcome investment opportunities and inquiries submitted
by e-mail, fax, or regular mail. A referral from an industry
contact or friend of the firm is helpful but not necessary.
Contact information can be found at Contact Sentinel. Top
10. How can I be sure Sentinel
will keep the information I share confidential?
We believe that successful investment partnerships are
based on mutual trust. As such, we zealously protect our reputation
for professionalism and integrity. We will always respect the
confidentiality of our discussions with you. After hearing or
reading a brief description of the opportunity, we will sign
a confidentiality/nondisclosure agreement if we conclude there
is a fit. Top
11. What information do you find
most helpful in evaluating an investment opportunity?
A complete investment memorandum or business plan is the
most useful document. A concise executive summary usually gives
us sufficient information to make a preliminary evaluation.
While we do not require any particular format for submissions,
to assure a prompt and decisive response your proposal should
enable us to answer the following questions quickly:
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