Investment Strategy
Dauntless is a private investment group formed to make equity and other junior securities investments in the acquisition of middle-market companies. The group finances its investments through private resources, together with institutional and private investment partners.
Targeted transactions
Private equity:
We seek to invest capital in -
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micro and small cap public companies,
orphaned corporate divisions, and
middle market privately held companies
In the public arena, we are interested in investing in firms where we are able to acquire a position of influence and the ability to help guide management and strategy. Our criterion includes companies with a market capitalization below tangible book value and a PE ratio that is less than comparable firms in that industry.
In such transactions Dauntless offers the company, capital for restructuring an over-leveraged balance sheet or to take advantage of expansion/growth opportunities. To shareholders, we offer a chance to convert an illiquid investment into cash or to participate with us in the upside of our value creation activities.
In the case of orphaned divisions we represent an opportunity for a parent company to effect a quick and discrete disposition of a non-core asset.
We also have a record of success in acquiring and creating value in more traditional middle market private equity transactions such as leveraged and management buyouts and recapitalizations.
Distressed debt:
Dauntless will also invest in non-performing and sub-performing financial assets as a means of acquiring troubled middle market companies. We have a specific focus working with commercial banks in the area of workouts and distressed credits with a view towards acquisition of the underlying companies.
Industry preferences
Dauntless seeks -
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low-to-medium tech manufacturing businesses,
consumer products suppliers,
business services and niche service companies, and
value-added distribution businesses.
Dauntless focuses on companies with revenues between $20 million and $200 million.
While our ideal investment is a well-managed company in a mature industry or perhaps a growth company, Dauntless relishes the chance to acquire under-performing businesses with unrealized potential where the operating experience of our partners can add value to the investment return.
Dauntless geographic focus is North American.