Our Approach

irst New England Capital targets for investment later-stage companies with a sustainable market position with favorable industry trends, a credible business plan with ample growth opportunities and a demonstrated track record of revenue growth and strong operating margin performance. We invest in businesses throughout the United States with annual revenues between $10 million and $150 million and minimum EBITDA of $2 million in a wide range of industries. While we are generalists in our approach, we do prefer investments in the areas of aerospace and defense, business and consumer services, manufacturing, value-added distribution, technology and healthcare.

Given our later-stage, subordinated debt bias, we approach potential investment opportunities with a particular focus on a company’s creditworthiness. That being said, the flexibility of our capital allows us to provide equity financing along-side our debt investments as well as on a stand-alone basis when warranted. We typically invest between $2 million and $5 million in our transactions and, occasionally, we partner with other institutional investors to meet needs of companies with larger financing requirements. In our co-investment transactions, we tend act as the lead investor, but will also participate as a member of a larger syndicate with other respected institutional investors. Furthermore, we will consider making smaller initial investments into companies where the capital requirements of the business provide the opportunity for follow-on investments in the future. Our capital is traditionally used to provide liquidity to founders and existing shareholders, support acquisitions and leveraged or management buyouts or to finance organic growth initiatives.

FNEC seeks to build long-term partnerships with management and create meaningful value for its portfolio companies in addition to providing capital. Our portfolio companies benefit from the collective experience of our entire investment team and network of advisors and have access to the full resources of our firm. When appropriate, FNEC has assisted portfolio companies in the following areas:

♦ Financing decisions and capital raising

♦ Mergers, acquisitions and divestitures advisory

♦ Strategic planning

♦ Establishing strategic and/or corporate partnerships

♦ Executive search and personnel recruiting

Over the years, our approach has resulted in successful partnerships with outstanding companies resulting in both favorable investment performance and significant increases in shareholder value.