Sharp Action generally looks to make private equity and venture capital investments that range from $5 million to $50 million of equity per transaction. We are also capable of completing smaller and larger transactions.
Sharp Action primarily seeks to partner with lower middle market companies generating positive earnings with identifiable growth opportunities. We will often take a control position in those companies, but we will consider minority positions in the right circumstances. Sharp Action’s private equity transactions will usually take one of the following forms:
Buyouts of private companies or divisions of larger companies.
Recapitalizations of family or founder-owned companies to provide owners with partial liquidity, access to additional capital and strategic partners, while allowing them to retain day-to-day operating control and a meaningful ownership position going forward.
Management buyouts designed to provide owners with full liquidity and management with access to additional capital and strategic partners. Meaningful equity ownership in companies will be assumed by existing management going forward.
Growth equity investments providing existing owners with the capital and strategic partnership required to expand their businesses, acquire competitive or complementary businesses, reduce financial leverage, or pursue other growth initiatives.
From time to time, we and our capital partners may determine that it is sensible to apply leverage to a deal in a prudent manner in light of the particular operating characteristics of a company.
Sharp Action also considers select private investment in public equity (PIPE) transactions.
Since our firm is an independent sponsor, we also have the flexibility to evaluate and invest in Series A, expansion, and late-stage venture capital transactions.
Sharp Action has access to sufficient capital amounts to allow it to serve as the sole, lead, or co-lead investor in these transactions. We also consider participating in transactions as part of a syndicated financing arrangement led by another private investment firm. These venture capital transactions are typically structured as minority equity investments.
We target companies that offer the potential for significant future growth, whether organic or through add-on acquisitions. Our firm focuses on companies we believe can be disruptive forces in the industry because of their innovative technology or otherwise and where there is visibility to a milestone that inflects the company’s value.