We invest in newly formed or established businesses to finance organic growth, acquisitions and the development of new products or services.
Our investment practice benefits from our deep understanding of industry fundamentals, growth trends, and business and investment cycles. We maximize the benefit of our experience and network for our portfolio companies by acting as a lead or control investor. With a focus on creating an alignment of interests among all stakeholders, our professionals partner with experienced management teams to build companies by employing proven models in well established markets. A typical portfolio company investment requires between $100 million and $500 million of equity.
We fund growth primarily with equity rather than using leverage. This proven approach has helped us generate value through equity appreciation at the company level, rather than through debt and financial engineering. Our unique Line of Equity funding structure allows management to remain focused on growing the business rather than being distracted by the ongoing need to find investors and raise money. Our Line of Equity funding structure also changes the risk/reward trade-off for our investors. It allows Pine Brook to expose a relatively small amount of capital at the early stage of an investment when the risk is greatest, and to invest larger amounts of equity, often on the original terms, after management has demonstrated its ability to execute the business plan. This approach protects the company’s access to capital during disruptive events in the capital markets and allows management to adjust the business plan as appropriate.