Investment Strategy

Trent Capital Partners was established in 2010 to invest in businesses where superior execution can generate superior returns.  We believe that return on capital employed in a business is, above all else, is the primary driver of value, and thereby, equity returns.  We seek to deploy capital in unique opportunities suited to growth in return on capital employed, typically through a combination of market-driven and operationally-driven dynamics.

We believe that our investment model and unique vehicle affords significant advantages over traditional PE structures:

  • Improved alignment of interests among the three principal parties:
    • Our Investors – Desire long-term returns on invested capital
    • Our Investment Team – Ability to execute long-term value creation strategies and not limited by fundraising cycle or fund life dynamics 
    • Sellers – Businesses of the size we target are often family-owned, the long term focus and family office investor base is an attractive alternative to traditional PE exit
  • Alignment creates unique, and improved deal origination, as well as attractive pricing when entering investments
  • Removing the fundraising cycle eliminates “underutilized or stagnant” capital, as well as the incentive to “sell your winners” during the investment cycle§Extended investment horizon offers investors the ability to compound returns, matching “generational” wealth creating goals
  • TCP’s carried interest is earned only after a high water mark is reached, and is paid in equity interests of the fund – further aligning the manager’s incentives with investors

Investment Strategy
TCP focuses on the proactive development of unique investment opportunities, and on opportunities where execution-based value creation is a fundamental component of the investment thesis.  We proactively work with managers to frame strategic direction, growth initiatives, and operational performance within such context.

TCP’s underlying investment criteria / company characteristics:

  • Ability to distill company strategy and investment thesis to proactive, execution-based value creating plan
  • Experienced management team with a compelling understanding of customer needs and ability to execute
  • Differentiated product or service offering a clear value proposition to customers
  • Defensible market position and the opportunity for significant share capture and/or domination of a niche
  • Predictable revenue stream and free cash flow generation
  • Transparent cost structure
  • Potential to achieve scale
  • Demonstrable ability to succeed in a downturn