Private Equity
Our Investment Strategy
Our Focus
We invest in the lower end of the mid-market in the U.S., one of the most difficult to access, but also one of the most profitable segments of the private equity market.
High number of targets
In fragmented markets. Lower middle market accounts for 86% of U.S. companies but only 20% of the capital in private equity.
Lower purchase prices
Driven by lower competition and advantageous investment processes, we also address the absence of an active, professional, and independent board of directors.
Significant value creation opportunities
By partnering with industry experts, we address key challenges such as under-developed strategic plans, limited management depth, inadequate financial and performance reporting, and capital constraints that hinder growth initiatives.
Multiple Expansion
Derives from the spread between valuation multiples in the exit as the business scale and become more sophisticated
Co-Investment
Criteria
ICP Group will typically invest in control situations alongside financial sponsors with industry specialization in mature companies with EBITDA between $5MM to $50MM with a preference for founder-owned and family-owned businesses.
Strong industry dynamics with attractive tailwinds.
Companies with strong, defensible, and proven business models (differentiated product or service, high value-added product, high barriers to entry, stable or recurring revenue, low customer concentration, etc.)
Leading market share or well-established brand or service.
Double-digit EBITDA margins, robust historical growth, and significant free cash flow generation.
Leading market share or well-established brand or service.
Reasonable valuation, moderate leverage, and considerable alignment of interests.
Significant and tangible organic and inorganic value creation opportunities with a sound growth plan in place.
Fund Criteria
ICP Group seeks to partner with top-tier private equity managers with the potential of being co-investment partners.
historical returns
Private equity managers with top quartile and low vitality historical returns that offer co-investments to limited partners.
Long-standing history and success with deep sector expertise.
Demonstrated ability to create consistent growth through operation, strategic, organizational and financial improvements.
Strong Teams with experience working together; stable teams of experienced and respected professionals.
of interests
Funds in which managers invest a meaningful portion of their personal net worth, and their compensation is balanced and linked to outperformance.
