Approach

We are 'special situations' investors. We look for analytically challenging, change-intensive investments where our skill set allows us to significantly improve strategic value. We call this transformational investing. This investment approach is a form of long-term arbitrage, where we invest in and then work with our portfolio companies to cause the spread between our purchase price and intrinsic value to narrow. In some cases, in addition to unlocking existing value, we can assist a company in increasing its long-term intrinsic value by bringing in new management, adopting a change in strategy, modifying its structure and approach to allocating capital, by selling or spinning off non-core assets, through cost control and with other approaches.

Our approach to investing and adding value to our portfolio companies is founded upon the rigorous application of fact-based analysis to understand, drive and implement strategic and operational change. This active approach is supported by the professionals at Clarkston Consulting, who assist us in the design and implementation of these transformation theses. We approach each investment as co-owners and principals with the management team. Together, we look to build exceptional long-term value in the companies in which we invest. For over a decade, we have successfully used this analytical approach, our substantial transaction structuring experience and our ability to add value to investments to generate superior returns.

Clarkston Merchant Partners Model

We do not seek to run day-to-day operations; we partner with exceptional managers. In all cases, we seek to closely align the interests of management with our own. Our team has both the experience and the resources to help companies successfully execute operational and strategic change. We do so through a collaborative approach with senior management with a focus on corporate strategy, merger & acquisition activity, operational discipline, and financial structuring.

The companies and opportunities that meet our investment criteria are usually operating in environments that are undergoing, or need to undergo, change. This includes companies at all stages of their life-cycle facing changing market dynamics and/or strategic, operational, financial or organizational challenges.

We approach each investment as co-owners and principals with the management team. Together, we look to build exceptional long-term value in the companies in which we invest.