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Arlington's strategy is to proactively identify investments within industry sectors possessing strong fundamental charactics. Within its sectors of interest, Arlington targets companies with embedded Franchise Value — those sustainable and differentiating attributes that create strategic value and the opportunity to build industry leading companies with strong growth and profit margins.
A key to Arlington’s strategy is its strong partnerships with management. The firm will either partner with an incumbent management team already in place at a business, or partner with independent operating executives to identify and pursue investment opportunities. Regardless of whether executives are in place at a company at the time of acquisition or if they are an independent operating executive recruited to run a company, the management team becomes our partner in the transaction. The firm works to support its management partners to build additional value post-investment. Arlington works closely with management on major strategic issues through its participation on the board of directors, but does not get involved with day-to-day operations, which responsibility resides solely with management.
The firm seeks to partner with exceptional executives with proven track records in their industry. The firm provides its management partners with opportunities for significant equity ownership in the business, offering the potential for extraordinary financial rewards tied to increasing shareholder value.
Arlington Capital Partners targets opportunities primarily involving private companies and divisions of larger businesses located in the United States with enterprise values of between $50 million and $500 million. The firm views this transaction size segment of the middle market to be particularly attractive for private equity investment due to:
- Strong potential for organic growth
- Consolidation opportunities in fragmented industries
- Significant opportunity for post-investment value creation through operating improvements
- Potential for valuation expansion as scale is achieved
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