Search
   
1.   What should one look for in a private equity firm?
2.   What is Sentinel's investment strategy?
3.   What is Sentinel's area of focus?
4.   What is Sentinel's preferred type of transaction?
5.   What is Sentinel's average equity investment?
6.   Does Sentinel prefer to be the sole institutional investor or will
      Sentinel co-invest with another private equity firm?

7.   Does Sentinel always seek board representation?
      Does Sentinel manage portfolio businesses?

8.   Who are Sentinel's investors?
9.   What is the best way to reach someone at Sentinel? Do I need an introduction?
10. How can I be sure Sentinel will keep the information I share confidential?
11. What information do you find most helpful in evaluating an investment opportunity?
12. How long does it take Sentinel to make a decision?
13. What factors influence Sentinel's investment decision?
14. What can I expect from the due diligence process?
15. What is Sentinel's preferred exit strategy?
16. What is Sentinel's investment horizon?

1. What should one look for in a private equity firm?
Choosing a private equity partner is an important decision with long-term implications. Entrepreneurial executives should identify an investment partner with a compatible philosophy and strategic outlook, the ability to add value, a record of success, and good character. Entrepreneurs should feel comfortable conducting their own due diligence on the private equity firm as part of the evaluation process. Top

2. What is Sentinel's investment strategy?
We have a focused investment strategy, key elements of which are to:

  • 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.
    Top

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. Top

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. Top

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. Top

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 bene
fit 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:

  • What are your company's products/services?
  • Who are your customers?
  • What is your growth strategy?
  • What is your company's market/competitive position?
  • Who are your current competitors?
  • What unique competitive advantages does the company possess?
  • Who are the key managers, and what makes them qualified to run this business? (Please include key bios.)
  • What is your current capitalization structure? (Please list owners and ownership percentages.)
  • What is the company's current revenue and profitability?
  • What is the company's historical five-year financial performance?
  • What are your financial projections for the next five years?
    Top

12. How long does it take Sentinel to make a decision?
You can generally expect to hear back from us within a few days after submitting an investment opportunity. We believe in thorough due diligence, but this doesn't prevent us from moving quickly when necessary. Depending on the complexity of the situation and the type of transaction, we can make a binding investment decision in anywhere from 30 to 90 days. Top

13. What factors influence Sentinel's investment decision?
While we recognize that there is no single determinant of success, our investment assessment typically focuses on two core areas: the capabilities of the management team and the prospects for sustaining and defending the company's revenue and profit formula. We are also influenced by our interactions with management during the decision-making process. See Investment Focus, for more information. Top

14. What can I expect from the due diligence process?
Our due diligence process typically includes an examination of key current customers and suppliers; a verification of the differentiation of your product or service; an evaluation of industry competitive dynamics; a review of historical and projected financial performance; and an assessment of the strength of the management team. Top

15. What is Sentinel's preferred exit strategy?
We approach every investment opportunity expecting and working towards a home run. While the most exciting outcome is often an initial public offering, we consider alternative exit strategies, such as sales, mergers or recapitalizations. Each exit decision is made through a careful joint evaluation with management, and takes into account the optimal strategic interests of the company's employees, customers, suppliers, and investors. Top

16. What is Sentinel's investment horizon?
Sentinel is a long-term investor. Our investment horizon is usually between five and seven years, although we have the ability to hold an investment for up to 10 years. Our fundamental goal for each portfolio company is to build intrinsic long-term value through responsible operation of the business. Few of our competitors, even those who claim to be long-term investors, can match our record of supporting management teams and companies. Top