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INTERMEDIARIES AND REFERRALS

We’re on the hunt for great businesses.

At a glance

We’re a private equity firm that invests and partners with family/founder owned businesses in the lower middle market.

8
Acquisitions from Fund I
$100M
Current Fund II Investment Pool
6
Entrepreneurs in residence actively searching
8
Acquisitions from Fund I
4
EIRs actively searching
$100M
Current Fund II Investment Pool

Why NGP

We pride ourselves on our network made up of highly experienced investment professionals that understand the process to the fullest extent. We’re always eager to grow and are grateful to the many relationships we’ve formed thus far—knowing well that’s where we found many of our best deals and colleagues alike. As we look to continue to expand our relationships, we welcome the chance to connect with you.

We take a unique approach to acquiring great businesses in growing industries. We partner with highly talented entrepreneurs-in-residence to acquire businesses with high growth potential. Once an investment is made, an EIR assumes a full-time management role within the company, creating liquidity for business owners while augmenting the existing team and continuing the success, and preserving the legacy of the business.

The core of our strategy is based on creating value through partnerships and collaboration. We partner with business owners that are seeking liquidity, operational support, and growth for their team. While also prioritizing partnerships with talented entrepreneurs-in-residence that have both confidence and humility to help foster the growth of an existing business. Additionally, we collaborate with our experienced investment team to efficiently close translations and surround these companies with highly experienced and involved members of our advisory board.

With each investment we make our network grows. An essential part of our ecosystem is our advisory board which consists of exceptional accomplished entrepreneurs, operators, and investors. All of these individuals are committed to the growth of our portfolio companies and often serve as board members post-close. Additionally, our expansive base of investors offers opportunities to get introductions to potential customers, team members, or industry experts.

All of our investments come from fully committed capital. This means that we have the capital readily available and, when it comes time to close, you can have full confidence in our ability fund the transaction. We are currently investing our of our second fund.

Investment criteria

 

SECTOR

LOCATION

REVENUE

EBITDA

TYPE

PLATFORM INVESTMENT

SECTOR Outsourced B2B services
LOCATION Headquartered in USA
REVENUE $5MM – $30MM
EBITDA $1MM – $6MM
TYPE Control

ADD-ON ACQUISITION

SECTOR Outsourced B2B services
LOCATION Headquartered in USA
REVENUE No size requirement
EBITDA No size requirement
TYPE Control

QUALITATIVE CRITERIA

Asset-light, mission-critical, strong financial performance, diversified customer base, strong management team

FAQ

Yes, NextGen is structured like a traditional private equity fund. We are investing out of our second fund that is approximately $100M of fully committed capital from our Limited Partners.

More than just investments, we’ve built long-lasting partnerships with several great businesses that you can view here.

An EIR will join the business in a full-time leadership capacity to help facilitate a transition plan and/or augment the existing management team. They will move to wherever the business is located and fully commit to accelerating growth in whichever capacity makes sense for the specific situation.

We target closing a transaction within 60-75 days after signing a Letter of Intent (LOI). This timeframe can vary depending on how readily available the data and information we need for diligence are provided. We are also cognizant of the existing management team’s needs to continue running the business, so we aim to keep our data requests organized and limited to what we need to know.

The vast majority of the equity comes from NextGen’s committed fund. We also encourage potential board members and other strategic investors to make a minority co-investment as they can add tremendous value in growing the company post-close. We typically use a conservative amount of leverage on each transaction. This debt comes from one of the many third-party lenders with whom we have a strong relationship. We are open to creative structuring to further align interests with the selling parties and/or bridge any gaps in valuation expectations. These can include seller financing (debt provided by the selling party that earns interest) and contingent payments that are based on future growth or other milestones for the business.

Absolutely, we encourage it! Nobody knows the business better than the current business owner, so we love the idea of aligning interests in the form of rollover equity. Any rollover equity would be in the same exact security as NextGen’s equity (no games are played—we want full alignment). If a business owner does not want to retain equity, we can work together to accommodate this by clearly defining the timing and expectations to facilitate a quick transition.

For our eagle-eyed friends.

You may not have an opportunity at hand, but if you’re interested in learning more about becoming an intermediary, we’d still love to get acquainted. Reach out and we’ll connect you with our investment team.

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