TSG Acquisition Fund I, LP (the "Fund")
$25,000,000 capital raise
$100,000 minumum
Accredited Investors Only *
(Preliminary Draft)
We identify and buy great companies with untapped potential and enhance their performance by uncovering and unlocking value through organic and strategic asset value creation. Our principals are based on Ben Graham and Warren Buffett’s “value investing” principals.
WHAT WE DO
There’s currently a $10 trillion wealth transfer. With that, everyday, 10,000 baby boomers retire for the next 19 years. They own 15 million small businesses, which equate to almost half of the United States small businesses. With the transition of traditional business ownership from retiring baby boomers, and the increase demand for trustworthy successors, TSG will serve as that long-term investor, buying and investing in these businesses for growth and scale.
INVESTMENT OPPORTUNITY
33 million small businesses in America
Baby boomers own around 15 million small businesses
10,000 baby boomers retire per day
BABY BOOMER SMALL BUSINESS OWNERSHIP
Baby Boomer businesses in green:
LEADERSHIP
SLY BUFORD
Our leadership is lead by founder and CEO Sly Buford. Our team includes a background mixture comprising of individuals with investing, private equity, banking, M&A and operational experience.
Demographics: Family owned, founder owned or small group of operating partner businesses.
Free Cash Flow: $1m - $10m in free cash flow.
Revenue: $5m - $25m in revenue w/ a clear path to double digit margins.
Management: Management in place.
TARGET INVESTMENTS
Our strategy is the buy and build model. We are buying undervalued companies and investing in a combination of organic and strategic growth (i.e. acquisitions, joint ventures, strategic partnerships, etc).
STRATEGY: BUY AND BUILD
PIPELINE
Between $50,000,000 - $75,000,000 in deal volume and growing.
We’re investing in traditional, mature and highly fragmented sectors that are simple to understand. This includes industrials, manufacturing, paper and packaging, building materials, specialty distribution, services, etc.
TARGET INDUSTRIES
We are only investing in profitable companies. No turn arounds. We intend to use little to no debt. This decreases our risk. Companies must have a significant margin of safety or at least on a positive trajectory of increased margins.
FINANCIALS
Equity: 10% - 50%
Seller Carry: 20% - 30%
Earn Out: 5% - 20%
Debt: 0% - 20%
TYPICAL CAPITAL STACK
TARGET GEOGRAPHIC LOCATION
Our main investment region is the Southeast Sun Belt highlighted in green below.
PHONE: 561-821-2029
ADDRESS: 1825 NW Corporate Blvd Suite 110 Boca Raton, FL 33431
EMAIL: sly@tenthstreetgroup.com
Disclaimer: TSG is providing this information solely as an overview of of TSG’s investment activities, not for any other purpose. This document neither constitutes an offer to sell or a solicitation of an offer to buy a security in any investment vehicle nor a recommendation to invest in any investment described herein, future investment or otherwise. No portion of the document may be reproduced or distributed without express written approval of TSG.