Investment Criteria

CSW provides capital and resources for closely held, middle market U.S. companies. Typically, we will invest between $8 million and $20 million, but are well-positioned to participate in both larger and smaller transactions.

Industries
We focus our investments on industries where we have special expertise. These include:

• Consumer/Retail
  – Manufacturing
  – Distribution
• General Industrial
  – Manufacturing
  – Services
  – Medical products and services

Targeted subsets within these broad categories include food and beverage manufacturing; distribution and logistics; branded and private label consumer packaged goods; consumer durables; packaging; and specialty retailing.

We do not generally participate in start-ups, technology companies or real estate investments.

Company and Business Attributes
CSW invests in controlling positions or strategic minority positions in fundamentally sound companies that typically share the following characteristics:

• Annual revenues between $25MM and $250MM
• Positive cash flow
• Exceptional management team
• Family-owned or closely held business, or corporate "orphan" within a larger entity

We also look for the following business characteristics:

• A dominant market position within a growing industry or sector
• A product portfolio with strong brand equity or other platforms for growth
• A product line with a defensible niche and/or high barriers to entry
• Opportunities for significant operational enhancements
• Industry consolidation or complementary acquisition opportunities
• Management encores—teams with proven success formulas

Typical Situations
Using our resources, we help entrepreneurs and management teams achieve their goals in a variety of situations:

• Families seeking liquidity
• Shareholders looking to recapitalize
• Companies seeking growth through acquisitions
• Companies seeking new market expansion—geographic, customer or product
• Large corporations selling "orphan" divisions or operations