“I didn’t have time to write a short letter,
so I wrote a long one instead.”
–Mark Twain
Why Partner with Twain Capital?
Patient Capital
Twain Capital partners with business operators and platform companies to help the business grow in perpetuity. Unlike traditional private equity, Twain provides patient capital with a focus on long-term cash flow generating businesses. Twain’s power to be patient stems from our ability to leverage our existing balance sheet for the majority or entire equity needed to close on a transaction, our willingness to personally guarantee lines of credit, and our commitment to remaining in lock-step with operators through the process. Our previous investments are in businesses that are cyclical in nature, that traditional private equity funds avoid based on fund mandates and short-term investment horizons.
Partnering with the Right Operator
Twain Capital’s flexibility as an organization allows us to be creative in the way we partner and invest in business platforms. In order to maximize organizational growth, the right people need to be in place, and oftentimes we invest in business where that is already the case. As an investor, we do not require control and are comfortable partnering with operators. Our investment team collaborates with operators to ensure the business has the right people, processes, and tools necessary to execute on Twain’s thesis and objectives.
M&A Advisory & Platform Creation
Twain Captial’s M&A experience allows us to facilitate bolt-on acquisitions effectively for our control buyout portfolio companies and advise our club deal portfolio companies on bolt-on opportunities. We view all investments as potential platform companies that are well positioned in a specific market segment. Twain has a proven track record of finding complementary add-on acquisitions to bolster profitability for legacy portfolio companies.
Capital Relationships
The process of raising capital can be a complex, time-consuming endeavor when preparing for M&A activity. Twain Capital invests a material amount of capital into every single deal, and often we are the only investor. Because we are not tied to fund mandates, Twain has the flexibility to close on transactions quickly whether we decide to partner with a strategic equity partner or not. Twain’s relationships with the banking industry and our ability to properly assess a lender’s services, products and terms, helps us further maximize the outcome. Twain has developed meaningful relationships across the banking industry and private capital markets, allowing us to close on transactions across various industries, geographies, complexities and deal sizes.
Technology
Our focus on digital transformation is the impetus for all our portfolio companies. With a technology-driven business transformation strategy, our portfolio companies can achieve value creation through technology implementation. By having the right systems in place, we can better leverage KPI dashboards, product road mapping, and margin optimization to help transform our businesses.
Investment Focus
| Control Buyout | Growth Investing | Early Stage | Club Deals | |
|---|---|---|---|---|
| Desired Ownership | 75% – 100% | 10% – 40% | Varies | Varies |
| Management | Twain Capital finds and inserts new management | Twain Capital backs young, talented operators to enable scaling of the business | Twain Capital participates & anchors early venture rounds | Twain Capital invests in 3rd party sponsored deals |
| Business Size | $2mm – $10mm EBITDA | $500K – $2mm EBITDA | Angel/Series A | $2mm-$10mm EBITDA |
| Portfolio Companies | Clampett Warren Timbers Green Acres | 1 Vision Monterey Twain Insurance | Supermind | Perco Rentals |