Investment Criteria

At GPB Capital, using a Holding Company Structure, we acquire income-producing, U.S. middle-market companies. Our acquisition targets compete in industry sectors we anticipate to fit the following criteria: - Current and Sustainable Yield - Recession Resilient - High Barriers to Entry - Proven Operating Partners / Management Teams

Focus - Shaping the Future

GPB Capital's access to proprietary deal flow and long-standing personal relationships with business owners can be combined to create distinctive transactions. GPB Capital aims to develop investor friendly structures that allow our clients to own businesses which generate steady cash flows and who we believe will shape the future of their dynamic industries, with an emphasis on, but not limited to:

Automotive Retail

The franchised auto dealer industry is the largest retail business in the U.S. according to the National Automobile Dealers Association and historically has performed well in both challenging and favorable economic environments.1 U.S. unit sales totaled more than 17.5 million in 2015, up 5% from 2014, and are expected to reach 20 million in 2018.2 GPB Capital's acquisition strategy is to focus on geographically diverse dealership assets located in attractive growth markets that are backed by stable manufacturers with a demonstrated commitment to their U.S. automotive presence.

1 Bank of America Merrill Lynch - Auto Dealer Manual - 2013
2 Bank of America Merrill Lynch - Auto Dealer Manual - 2015 and Morgan Stanley January 2016 Autos and Shared Mobility Reports

Managed IT Services

The industrialization of technology over the last decade has changed the way businesses evaluate and consume IT. Companies now view technology as an operating cost rather than a capital investment. Companies are under pressure to manage IT infrastructure and yet for small companies, hiring full time employees and building an IT department is prohibitively expensive. These trends have fueled explosive growth in the managed IT services space. GPB Capital intends to target IT Services companies in strategic U.S. markets who provide affordable solutions to the complex technology problems of businesses.

Debt Strategies

A combination of tight credit and stringent lending criteria has created a sizeable, underserved segment of the market that does not have access to growth capital from traditional sources. As a result, businesses and real estate projects that may require smaller loans are being overlooked in favor of larger deals. This has created a decline in lending for the lower middle-market, and as such, we expect to target these entrepreneurs by offering senior secured loans to small and medium-sized North American businesses.

Special Situations

Acquisition opportunities in Special Situations may fit GPB Capital's key acquisition criteria of current and sustainable yield, recession resilient, high barriers to entry and proven operating partners / management teams. While GPB Capital does not intend to limit the industry sectors, areas of particular interest are Healthcare Services, Waste Management, Technology, Communications, Energy, Manufacturing, Retail, Life Sciences and Real Estate.

Real Estate

GPB Capital Real Estate Strategy is focused on the acquisition and development of real estate that can benefit from GPB Capital’s proactive management and repositioning strategies. Candidate investment properties for the portfolio are well-located assets that can be improved over a relatively short period of time to create strong returns for investors. Identifying and capitalizing on market trends is a key component of GPB Capital’s strategy. GPB Capital will partner with other experienced real estate developers and operators to invest and co-manage investment opportunities that span a number of asset classes.

Waste Management

GPB Capital is focused on acquiring and operating portfolio companies in the solid Waste Management industry currently serving the commercial, industrial and recycling sectors. The target portfolio companies include but are not limited to: commercial, industrial and residential collection services, transfer stations, recycling facilities and final disposal end-site infrastructure including landfills and other waste-to-energy facilities where waste products are used as fuels or feedstock for various processing technologies to create energy. Our Waste Management portfolio companies intend to offer current and sustainable yield, recession resiliency and high barriers to entry due to stringent government regulation. Revenues in the solid waste industry are typically structured as long-term contract services and our target acquisitions are led by proven operating partners / management teams, making these portfolio companies an ideal fit for GPB Capital.

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