As Partners, We Should All Reap the Rewards

Topspin Consumer Partners focuses on partnership transactions with founder-owners, and attracting top quality management and industry executives to drive company growth. Owners and management teams often remain partners in our deals going forward, either on an equity rollover basis, as a senior executive, or both. Topspin has an established reputation for working productively with business owners, and a proven track record of success in generating attractive returns for our deal partners. A partnership with Topspin enables owners to execute their strategy and achieve calculated growth.

Topspin Consumer Partners Meeting

Investment Philosophy

Our approach in the lower middle market is highly focused on growth, and utilizing a specific set of value levers and skills in partnership with talented management teams in achieving high performance targets.

  • Long-Term Orientation with Operator’s Focus: We approach private equity investing with an operator’s mindset, and believe that the best results come through effective ground-level execution, not financial engineering or excessive leverage.
  • Rewarding Outperformance: We believe all parties should have aligned interests and share in the success of our investments, so we provide our executives with attractive equity incentives and encourage existing owners and managers to rollover existing equity into our transactions.
  • Outside Deal Partners: We actively seek out and work with seasoned industry executives, and minority deal partners.

We invest in fundamentally sound, growing companies that have high-quality management teams and operate in sectors where our investment team has extensive experience, and pursue an investment strategy we call “3-D Investing”, i.e. seeking businesses with Defensibility, Differentiation, and Drivers of Growth.

Defensibility

  • Significant competitive advantages and recession resistant
  • Business model has been resilient in the face of market pressures
  • Focus on sustainability of pricing and gross margins
  • Brands are the most prevalent form of defensibility
  • Avoid investing in commodity-oriented businesses

Differentiation

  • New or unique way of addressing existing market needs
  • Demonstrated customer demand for innovative offerings
  • Puts the company in a strategic position to capture market share
  • Company can generate meaningful revenue growth, yet “fly under the radar” because of its small size relative to competition

Drivers of Growth

  • Clearly defined growth thesis to avoid value traps
  • Organic growth drivers that can be realized in the near-term
  • Strong secular tailwinds
  • Opportunities for add-ons to platform
 

“This is an exciting time in digital health, and with Topspin’s experience and network in media and information services, they are the ideal partner to help Remedy maximize its potential.”

Mike Cunnion, CEO of Remedy