investment criteria
Ridgeway Capital’s investment focus is on businesses that display the following criteria:
- lower mid-market or SME business - typically revenues of £2m up to £100m;
- a strong business model and/or market position;
- a core management team that is motivated to drive the business forward (this may include teams that need additions and strengthening);
- UK based or headquartered (but comfortable if there are overseas elements);
- funding requirement of £500,000 to £5 million;
In addition, we:
- are sector agnostic - our expertise is in the business situation, albeit we have strong experience in many sectors; and
- seek an influential equity stake in the business, although this can be a minority stake (dependent on the business situation).
We do not invest in:
- businesses that are start-ups, pre-revenue, or with unproven products or market demand;
- interim funding rounds, where the funding requirement is insufficient to take the business to profitability and positive cash-generation; and
- complete Management Buy-Ins (MBI)
investment structure
We focus on generating a capital return for the equity in the business. Understanding the motives and objectives of our prospective partners in a business is fundamental to us in structuring an investment, both to ensure all interests are aligned and to assist practically where possible (e.g. if succession planning is important to an eventual realisation).
- We can act quickly and decisively. We are a small team of Principals involved in all aspects of the investment – from investigation and due diligence, through post-investment support and Board participation, to eventual exit.
- We work alongside existing lenders, or alternatively can invest together with new bank lenders.
- We will in most instances take positions on the Board of the investee company and look to leverage our experience and networks for the benefit of the business.
- We may structure some of our investment as debt, where appropriate.
- We can provide all funds on day one or alternatively on milestones, as required and appropriate.
- Where relevant, we may structure our investments as EIS qualifying.
- We can purchase existing debt positions to facilitate the investment, if applicable.
