The Fund’s investment strategy is provide capital to companies that operate in the middle market segement.  The Fund will look at deals in the leverage buyout, distressed, restructuring, and growth equity segments.

Criteria

The Manager will focus on the following criteria in making an investment decision in a prospective portfolio company: 

Florida Focus. The Fund produces superior returns by capitalizing on its geographic location and being actively involved with owners and entrepreneurs in Florida.  The Manager spends significant time and resources proactively tracking deals in the state and backing the best owners and entrepreneurs in the region. 
 
Established Management Teams. The Manager backs management teams with successful track records in building organizations and managing high growth. Each management team member must be fully committed to the company and have significant personal interest vested in the company’s success. The Manager has developed large personal networks of entrepreneurs and business executives in the region. Experience has shown that the strongest management teams produce the most successful investments, and that firsthand relationships and experience provide the best basis for selecting the management teams.
 
Large and Growing Markets. The Manager seeks portfolio companies with large, sustainable markets with attractive industry characteristics.  Each portfolio company must have the flexibility and potential to expand and become an large industry player.
 
Solid Business Models. A key factor in making an investment in a portfolio company will be the company’s  distinction from its competitors. The Manager will seek portfolio companies and business models that provide clear utility, time, or cost advantages.  Companies must have a competitive advantage in their sector or niche.
 
Well-Defined Product or Service. Further requirements include a product or service that is well-defined with fully implemented solutions from which to obtain testing and outside market validation. The Manager focuses his efforts on assessing market and execution risk rather than product or service development risk.
 
Optimized Investment Terms. The intent of the Manager is to provide investors, owners, and entrepreneurs all with attractive, long-term capital returns with low risk of losing principal. In order to achieve this goal, the Manager uses investment terms that provide reasonable valuation and allow for adequate company control. The Manager works closely with management teams and co-investors to ensure the interests of all parties are aligned and secured. 

Exit Path. The Manager prefers companies with multiple exit opportunities and business plans that strategically allow for an exit within three to five years. 

Value-Add Emphasis.  Sunrock Equity Partners believes that in order to maximize returns the investor must add business value to the portfolio companies in addition to capital. The Manager will assist portfolio companies with business modeling and strategic planning.  He will also use his existing relationships to help with external expansion such as licensing, distribution agreements, acquisitions, joint ventures, locations, and project finance. The Manager will assist in introducing allies and potential M&A partners. He will help portfolio companies by providing advice on regulatory, tax, and finance issues. Finally, the Manager will conclude each investment by helping the portfolio companies maximize the exit in terms of value and timing.