What we look for in a portfolio investment.
A North 41° investment checks at least five of the Core Three boxes — and meets a tight, fundamentals-first bar on revenue, retention and management alignment.
Five+ Core Three checks
AI beneficiary sector, resilient business, resilient assets — at least five attributes stacked.
PE-owned 18+ months
Past initial management transition with core reporting and infrastructure already in place.
15%+ growth potential
High conviction we can accelerate sales, marketing and product engines from day one.
Cash flow positive
Breakeven or positive after debt service. Not bleeding cash to lenders. Clean foundation to compound on.
Recurring revenue base
Stable customer base with proven retention. Sticky revenue that survives macro and AI shifts.
North American focus
Majority of revenue and team in North America — geographically aligned with our operating capacity.
Aligned management
Solid team that wants to win, willingness to partner, and alignment on the go-forward direction.
Pipeline & roadmap
Demonstrated investment in the future of the business — not just maintenance-mode operations.
Multiple value levers
Tech and data transformation, ops/finance efficiency, and a healthy, growing addressable market.
Disciplined, thesis-driven, opportunistic.
We don't chase sectors. We pursue specific business and asset attributes wherever we find them — and partner with strong management teams who bring the sector expertise.
The opportunity in stuck portfolios.
Roughly two-thirds of PE investments are not winners and sit on existing books. Many sponsors are willing to take significant haircuts to exit them.
- Identify companies that fit the Core Three thesis
- Restructure debt with banks; free up cash flow for growth
- Reinvigorate sales and marketing; align leadership for growth
- Reinvest in innovation, capex, capsoft and technology
- Refocus product and team toward sustainable expansion
Fundamentals still rule.
The Core Three is necessary but not sufficient. Every portfolio company also clears a tight, traditional bar.
- Established business with strong customer base
- Solid financials and dependable cash flows
- Proven product or service pipeline
- Multiple structural levers for growth
- Management teams aligned on the long-term outcome
If you're an LP, founder or operator — let's talk.
Specific fund terms and pipeline details are available to qualified investors on request.