Alterna Strategy

Alterna has a partnership-oriented investment strategy alongside founders and management teams. We focus on majority acquisitions of lower middle market family- and founder-owned companies that have reached an inflection point. We seek to back teams with a clear vision for the next phase of growth, supporting the management team’s vision and adding value in key areas where the company needs additional resources, driving growth via both organic and inorganic channels. Through aligned interests, we seek to produce outsized results for both team members and our investment partners.

Alterna's Unique Approach

We emphasize several key areas within our investment thesis.

Focus on Alignment

We look for significant equity alignment with founders and/or management teams who are seeking to participate in meaningful upside opportunity via a true partnership approach with an investor who supports their vision for growth.

Ability to Scale Quickly

Alterna seeks opportunities where the opportunity for significant scale and growth are present, with management teams who have a clear vision for how to achieve these goals.

Conservative Capital Structures

We believe growth and optimization drive returns, not leverage and financial engineering.

Majority and Minority Investments

Partnership oriented investments alongside founders and management teams with a goal of accelerating the next phase of growth, unlocking value via clearly defined organic and inorganic growth pathways.

MAJORITY AND MINORITY INVESTMENTS
IN FOUNDER & FAMILY-OWNED BUSINESSES

Investment Criteria

SIZE

(Larger with additional Equity co-investment alongside AEP):

Equity Investments: $5-20 MM
Enterprise Values: $15-150MM
Revenue: $10-150 MM
EBITDA: $3-15MM+
No minimum size for add-ons

SECTORS

Business Services
Industrials
Healthcare Services
Transportation & Logistics
Technology
Financial Services

TRANSACTION TYPES

Buy and builds strategies
Founder-owned and family businesses in transition
Operador-led and non-sponsor buyouts
Management-led buyouts

GEOGRAPHY

Ability to invest across the United States
Core focus on companies headquartered in the South

MANAGEMENT

Partner-oriented entrepreneurs
Proven and talented management teams with deep industry expertise
Management teams poised for the next phase of growth
Strong alignment of interests

TARGETED COMPANIES

High free cash flow conversion
History of strong financial performance
Defensible market position and competitive advantages
Diversified customer base/ end markets
Tangible and executable growth opportunities