Alchemy Capital Partners seeks to work with companies with proven business models, brand recognition, a track record of profitability and prospects for organic or external growth. Our strategy is based on leveraging the expertise of our team and our partners to actively drive the value creation process, and as such, we prefer companies in sectors where we have experience, including technology, consumer products, transportation and logistics, communications, digital media and security. We are long term, patient investors and seek to proactively create value rather than maximize returns through cost-cutting strategies that maybe detrimental over the long term.
Our operating structure provides us with maximum flexibility that allows us to advise, co-invest or invest in each of our clients. In each instance, we look for specific opportunities where we may be able to create value, including an improvement of operating performance (i.e., revenue growth, operating efficiency, international expansion, channel addition, etc.), restructuring of the balance sheet to enhance working capital and asset utilization, acquisition opportunities and efficiencies that could result from the adoption of new technologies.
OUR INVESTMENT CRITERIA
For direct investments, Alchemy Capital Partners typically seeks companies with an enterprise value of between $10 million and $30 million, and we prefer to be the controlling investor in each of our portfolio companies.
Our ideal investment candidates have EBITDA of between $1 and $4 million, an ample competitive position and historical profitability. We are also comfortable investing in companies that are underperforming and require operational restructuring or strategic repositioning to return them to their growth paths. We are well suited to work with family-owned companies that lack a succession plan.