What We Do

Our Approach

Since our founding in 1993, Valesco’s investment solutions have allowed us to successfully grow small and lower middle-market companies across a variety of industries.

Valesco has experience working with a variety of investment solutions and a key to every structure is our ability to bring our capital in a very conservative structure to ensure success depending on each company’s unique situation and goals. We have a proven track record of success creating flexible solutions for companies, while also creating lasting value for the company, its employees and investors.

What’s Your Ideal Capital Structure?

 

Types of Investments

Majority Investment

In a majority investment, Valesco would buy a majority interest in a business while partnering with the existing management team to ensure ongoing growth. Unlike other investment companies, Valesco has access to all of the funds needed for the buyout, which can be structured with any combination of equity and debt.

Minority Investment

When a business owner seeks a third-party investment but does not want to give up their majority ownership they may opt for a minority investment, where the investor can take a passive or active role. Not many firms make minority investments because they can be difficult, as some investors like the idea of control. At Valesco, we believe in partnerships. If a decision doesn’t work for everyone, it won’t work at all. Business owners don’t have to sell their whole business and give up control, but rather bring on a successful partner to help grow their business.

Subordinated Debt

In a subordinated debt structure, Valesco provides growth capital as a supplement to a bank loan. Whether it’s buying a competitor or adding a new production plant, subordinated debt can be a cost-effective way to accomplish goals. It is patient, long-term capital with no amortization that can help foster growth and expansion.

We typically partner with existing management to leverage the experience and dedication of an established and successful team. We have had success working with companies under a number of circumstances, including:

  • Owner Succession
    Capital for shareholders seeking an exit to accomplish personal or estate goals.
  • Management Buyouts
    Backing an incumbent management team in acquiring their business from existing shareholders.
  • Recapitilization
    Providing liquidity for existing shareholders while enabling them to remain as significant owners to benefit from future growth.
  • Growth Financing
    Longer-term capital for major internal or external growth initiatives such as mergers/acquisitions and expansions of operations or products.

“Valesco provided the best of both worlds – I received a meaningful dividend and kept control of my company as well as a partner that rolled up their sleeves and helped grow the business to new heights.”

– Brian Elliot, Founder & CEO, allgoods, LLC

“Valesco has brought discipline to our organization like we’ve never had. Together, we consistently identify opportunities for improvement and Valesco ensures that we make time to work through and develop an action plan related to those opportunities.”

– James Crocker, Founder & CEO, Waterblasting

“Our third-generation business is growing very rapidly, and we believe Valesco’s expertise and capital can help us further accelerate that growth and strengthen our fundamentals.”

– Jeff Huntley, SR, CEO, T-H Marine


Investing in our Community

Our investment strategy is designed to help businesses grow as well as retain and increase job opportunities in the community. Over 80% of our investments have been in businesses that support or service underserved communities and individuals in some way. Aside from creating jobs, we have also contributed millions to local and national philanthropic causes. By investing back into the community, we hope to further inspire efforts to improve the world around us.

Valesco’s history is filled with investments in underserved communities, diverse workforces and female or minority owned and operated businesses. Valesco’s success depends upon a variety of backgrounds and perspectives that drive growth and prosperity for our companies and the communities they support.

Commitment
Beyond Capital