Investment Strategy & Transaction Types
The flexibility of our investment mandate is a key differentiator for management teams and co-investors. We can invest in a range of securities including equity, subordinated debt, or some combination of the two. Unlike other funds, there is no set formula for what the equity and debt split needs to be, which gives us the ability to customize a capital structure that we believe is appropriate for each investment.
As a manager of the BBH private equity funds, we invest in the following transaction types:
Control Transactions
We take a majority stake in the company and serve as the financial sponsor:
- Typical structure includes a one-stop junior capital solution comprised of an equity and subordinated debt investment by BBH
- Attractive option to owner/operators focused on the certainty of close that comes with one junior capital provider
Minority/Non-Control Transactions
We are the lone institutional investor with a minority stake in an owner-operated business or a significant minority investor in a business with institutional investors that are seeking to bring on an additional financial partner:
- Typical structure includes either straight preferred or common equity or some combination of equity and subordinated debt
- Our capital supports management buyouts, growth, recapitalizations, venture-backed companies whose investor base may have varying liquidity goals, or investors seeking capital for partial liquidity and/or growth
- Ideal for family-owned or privately-held businesses in need of capital but seeking to retain economic control
Partnering with Operating Executives or Other Investors
- We provide a mix of equity and subordinated debt to a family investment office or fundless sponsor with an existing portfolio company or new investment opportunity that requires a primary capital provider
- We back executives with the capital necessary to complete a management buyout or leveraged buyout of a business identified by us or the executive