Investment Focus & Thesis

Northstar Capital specializes in junior capital investments and equity co-investments. Their investment thesis centers on providing flexible capital solutions to lower middle market companies: Investment Range Flexible capital solutions ranging from $10 million to $50 million for lower middle market companies. Capital Solutions Junior debt, mezzanine, preferred equity, and co-investment opportunities. Junior capital — Subordinated debt and mezzanine financing for growth and acquisitions Equity co-investments — Partnering with PE sponsors on platform investments Recapitalizations — Providing liquidity to founders and shareholders Growth capital — Financing for organic growth and expansion

Notable Portfolio Companies

Northstar Capital has built a diversified portfolio across multiple industries: Company Sector Notes TalentSmartEQ Technology Services Talent assessment and HR technology services TMI Coatings Industrial Services Industrial coating and surface treatment services Horizon Services Business Services Commercial and industrial services Midwest Manufacturing Manufacturing Custom manufacturing solutions Prime Distribution Distribution Value-added distribution services TechPro Solutions Technology Technology solutions and services Northstar has completed over 170 investments across multiple industries, demonstrating their flexibility and expertise in the lower middle market.

What Northstar Looks For

Based on their investment patterns, Northstar Capital evaluates opportunities based on: Financial performance — Companies with proven revenue and EBITDA generation Market position — Companies with defensible competitive positions in their industries Management teams — Experienced operators with track records of success Capital structure — Opportunities where flexible capital solutions can add value Industry sectors — Broad flexibility across manufacturing, services, and distribution }> Pro Tip Northstar provides flexible capital solutions including junior debt, mezzanine, and equity co-investments. They often partner with other PE sponsors on deals. If you're working with a PE sponsor, ask them if Northstar could be a potential co-investor.

How to Connect With Northstar

Approaching Northstar Capital requires demonstrating your business excellence: 1 Demonstrate Financial Performance Show proven revenue and EBITDA generation. Northstar looks for companies with track records of success. 2 Showcase Market Position Highlight your defensible competitive position in your industry. Be prepared to discuss your competitive advantages. 3 Present Capital Needs Be ready to discuss how flexible capital solutions could benefit your business - growth capital, acquisition financing, or recapitalization. 4 Work With Advisors Many deals come through investment bankers, attorneys, or other advisors who have relationships with Northstar.

The Value of Financial Preparedness

PE firms like Northstar expect detailed financial information: Financial Metrics • Revenue and EBITDA history • Gross margin trends • Cash flow generation • Debt service coverage Capital Structure • Current debt levels • Proposed capital structure • Use of funds • Projected returns }> How Eagle Rock Helps We help companies prepare for PE investment by building detailed financial models, capital structure analysis, and growth projections. Our fractional CFO services ensure your company is ready for due diligence from firms like Northstar.

Frequently Asked Questions