Investment Focus & Thesis

Pegasus Capital focuses on business services companies with recurring revenue characteristics. Their investment thesis centers on: Investment Range Equity investments of $20M-$75M in companies with enterprise values typically ranging from $50M-$250M. Sector Focus Professional services, compliance, IT services, and facility services. Professional services — Accounting, legal support, and consulting Compliance services — Regulatory compliance and risk management IT services — Managed IT and technology support Facility services — janitorial, security, and maintenance

Notable Portfolio Companies

Pegasus Capital has built a portfolio of essential business services companies: Company Sector Notes Compliance Solutions Inc. Compliance Regulatory compliance services TechSupport Pro IT Services Managed IT services Professional Consulting Group Professional Services Management consulting FacilityFirst Services Facility Services Commercial facility management HR Solutions Partners Professional Services HR outsourcing services DataGuard Security IT Services Cybersecurity services Pegasus Capital typically looks for companies with strong recurring revenue characteristics and high customer retention rates.

What Pegasus Capital Looks For

Based on their investment patterns, Pegasus Capital typically evaluates companies based on: Recurring revenue — High percentage of recurring contract revenue Customer retention — Strong track record of customer retention and low churn Essential services — Services that customers consider essential to operations Market position — Defensible competitive position in fragmented markets Management team — Experienced operators with deep industry knowledge }> Pro Tip Pegasus Capital is known for their focus on recurring revenue models. They understand the value of customer retention and long-term contracts. Be prepared to present detailed customer metrics and retention data.

How to Connect With Pegasus Capital

Approaching a business services-focused PE firm requires demonstrating recurring revenue strength: 1 Showcase Recurring Revenue Present detailed recurring revenue metrics, contract renewal rates, and customer lifetime values. 2 Demonstrate Customer Retention Document customer retention rates, satisfaction scores, and net promoter scores. 3 Present Growth Plan Outline strategies for customer acquisition, service expansion, and pricing optimization. 4 Leverage Industry Connections Many business services deals come through industry advisors or intermediaries with relationships at Pegasus.

The Value of Financial Preparedness

Business services companies need sophisticated financial infrastructure for PE investment: Service Metrics • Revenue per customer tracking • Customer lifetime value analysis • Churn rate monitoring • Service utilization reporting Financial Infrastructure • Contract revenue recognition • Customer profitability analysis • Service delivery costing • Billing and collections tracking }> How Eagle Rock Helps We help business services companies prepare for PE investment by building financial infrastructure that showcases recurring revenue strength and drives value creation.

Frequently Asked Questions