Redan Capital Approach

Redan Capital Management, LP

InvestmentApproachRedan seeks to create value in its portfolio through productive partnerships with management, driven by the following principles:Invest in high-quality, profitable companies in true partnership with outstanding management teamsProvide for significant retained / reinvested equity by owners and managementManagement owners retain day-to-day operating controlPrudent use of financial leverage to maximize operating flexibilityPursue and execute add-on acquisitions when strategically appropriateExecute on revenue enhancement and margin improvement opportunitiesPrepare companies for exit in two to four years to a broader range of strategic and financial buyersRedan does not manage portfolio companies’ day-to-day operations; rather, we take an active value creation role at the Board of Directors level, assisting companies in the following areas:Creating meaningful incentive compensation plans for key managersEstablishing a professional Board of Directors, including independent directors with relevant industry experienceAssisting management in identifying and implementing organic growth strategiesSelectively identifying, structuring, financing and closing add-on acquisitions, when strategically and financially appropriateEvaluating suppliers and implementing disciplined sourcing programs both domestically and internationallyAssisting management in negotiating best-in-class pricing for indirect expense categories, including: (i) insurance; (ii) long distance telecom; (iii) small package freight; and (iv) TL and LTL ground freightAssisting management in optimizing working capital managementImplementing cash controls and standardizing financial and operational reporting, including regular tracking of key operational metricsAssisting senior management in recruiting additional operational and financial managers, when appropriatePrivate Equity Investments for Southeastern Companies© 2010, Redan Capital Management, LPCriteriaTeamInvestorsDownloadsContactHome