Sweetwater Capital Group typically invests $3 – $15 million in each portfolio company. We can be flexible on structure but most frequently make our investment in the form of preferred equity securities.
We invest in recurring revenue service businesses which have a proven business model and an outstanding management team. We are very comfortable investing at an early stage in the development of each individual company. For example, we have provided several companies with their initial investment dollars, supplying the funds needed to support corporate and sales overhead in advance of providing the funding for capital expenditures.
We are comfortable with capital intensive businesses, and often view the capital intensive nature of certain businesses as a benefit, bestowing a competitive advantage and a potential barrier to entry by other competitors. We like businesses that require what we refer to as “success-based” capital expenditures, where the need to invest additional capital is driven by the successful award of a new project, acquisition of a new client, etc.
Whether we are in a control position or holding a minority stake, we are an active investor. We believe that our operational and strategic experience can be very useful for a growing company in the process of building value.