Investment Criteria
Size:
Under most circumstances, we are looking to invest in companies with EBITDA between $5 to $25 million.  We recognize that in many situations, particularly during times of financial distress, recent profitability is not reflective of normalized earnings.
Healthcare Service Sectors:

North Peak is interested in investing in the following areas of healthcare services.

  • Physician support services (e.g. medical billing and collections, staffing, etc.);
  • Dental products and services;
  • Medical providers (e.g. hospitals, freestanding diagnostic imaging, hospice, dialysis, occupational health, home healthcare, skilled nursing, etc.);
  • Managed care (commercial, government, carve-outs);
  • Worker’s compensation insurance (and support functions);
  • (Low-tech) durable medical equipment;
  • Data and informatics (including disease management);
  • Outsourcing solutions (for hospitals, insurance and pharmaceutical companies, etc.);
  • Medical staffing; and
  • Distribution (and specialty pharmacy)
Education Sectors:

North Peak is interested in investing in the following areas of for-profit education:

  • Post-secondary and adult-oriented education (both U.S. and international);
  • Standardized test preparation;
  • K-12 tutoring services;
  • Assessment and testing products;
  • Supplemental education and special needs services;
  • Early childcare service providers;
  • Education content and publishing;
  • Foreign language instruction; and
  • Corporate training
Consumer/Retail:

North Peak is interested in investing in the following areas of consumer/retail:

  • Hardline and softline retailers;
  • Online retail;
  • Restaurants; and
  • Leisure services
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Management:
North Peak prefers situations where management will maintain a role in the company post-closing, and will require management to invest meaningfully alongside of North Peak in order to align interests.  We will also consider situations where existing management is using the transaction to exit the business, but only where there is an orderly transition plan and where the firm knows a capable replacement team.
Investment Characteristics:

North Peak seeks companies with:

  • Sustainable competitive advantage, as defined by:
    • Leading niche market positions
    • High quality, value-added products and services
  • Potential for highly profitable internal growth (e.g. high return on capital)
  • Opportunity for significant market share capture
  • Low technology risk
Control:
In general, we prefer investment situations where we will control the company, given our operating approach, but will opportunistically pursue minority investments as well.


 
North Peak Capital LLC  •  1350 Avenue of the Americas, 3rd Floor  •  New York, NY 10019  •  Phone: (212) 687-6800
Copyright © 2005 North Peak Capital LLC