BBHCP Private Equity

Customized hybrid equity solutions for middle-market companies

BBHCP Private Equity (BBHCP) provides highly customized capital solutions to lower middle-market companies. Our flexible mandate allows us to act as a control or non-control investor and to provide subordinated debt in select situations.

BBHCP partners with founders and management teams at critical inflection points in the life cycle of their companies while offering creative alternatives beyond simply selling most, or all of, the business. The hallmarks of our strategy are:

  • Access to the global network of BBH
  • The ability to customize investment structures to the specific needs of private business owners
  • The focus on being the first institutional equity partner to a family-, founder-, or management-owned company
  • Conservative balance sheet construction to protect capital and allow our management teams to focus on operations

BBHCP has a deep bench of operational and project-oriented resources made available to management teams at no cost.

  • Approximately

    $3.0 billion

    in committed capital

     

Benefits of BBHCP as a partner

The BBH advantage

BBHCP leverages the extensive global network of BBH and its executives to provide our portfolio companies with a wide array of benefits, including access to new customer/vendor relationships, introductions to potential acquisition targets, assistance with evaluating and implementing new or additional information systems, and help identifying and hiring key leadership talent.

 

Flexible mandate

The flexibility of our investment mandate stands out for management teams and co-investors. We are not beholden to the same “one-size-fits-all” approach of private debt and other private equity providers. BBHCP provides an attractive hybrid option for private business owners seeking something other than a highly leveraged LBO or a lender with a credit-only mindset. We complete both control and non-control transactions and generally invest in structured equity securities with the ability to invest subordinated debt in select situations. Unlike most private capital providers, we customize our investment structures based on the needs of the founders and management teams with whom we partner, which include a combination of partial liquidity, capital for growth including M&A, and/or the reduction of debt.

In both control and non-control investments, BBHCP specializes in being the first institutional equity partner to a family-, founder-, or management-owned company, and we have a long track record of serving in this capacity.

Transaction types

BBHCP takes a majority stake in the company with a meaningful retained stake held by the founders and management teams of the business.

This structure is often ideal for a privately held business in need of capital but seeking to retain economic control while leveraging the capital and resources of BBHCP to build shareholder value.

The BBH network, the flexibility of our investment mandate, and our principal focus on family- and founder-owned businesses are key differentiators for the management teams and founders with whom we partner. We evaluate both control and non-control transactions and can invest in a range of equity and equity-linked securities.”
– Brad Langer, Partner of BBH and Co-Manager of BBHCP Private Equity

Investment profile and strategy

We employ a rigorous top-down model, which identifies industries and sectors that will benefit from key macro, micro, and supply-demand themes in North America. We then seek to identify lower middle-market companies that fit into these pressure-tested themes and that meet our stringent investment criteria.

  • Investment size

    $50 million to $150 million

    (substantially
    larger with co-investments and limited partners)

  • Target enterprise value

    Up to $750 million

  • Management or leveraged buyouts 
  • Minority or majority recapitalizations (including dividend recaps) 
  • Growth financing 
  • Ownership transitions and generational transfers 
  • Buy-and-build strategies 
  • Acquisitions or industry consolidations
  • Headquartered in North America, although may have international operations 
  • Operate in an industry with favorable growth characteristics, well-formed competitive dynamics, and high barriers to entry 
  • Offer essential products and/or services 
  • Generate significant recurring or reoccurring revenue and free cash flow 
  • Capital structures and business models that buttress our investment with a significant margin of safety1
  • Have effective management teams who are economically aligned with BBHCP 
  • Have identifiable acquirers regardless of economic and operating environments 
  • Management will actively use the resources of BBH and BBHCP to drive key strategic, financial, and operational initiatives
  • Business products and services 
  • Healthcare 
  • Technology, media, and telecommunications

BBHCP Private Equity tear sheet

 

BBHCP Private Equity Portfolio Companies

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Contact us

1A margin of safety exists when we believe there is a significant discount to intrinsic value at the time of purchase.

This communication is for informational purposes only.  The information herein has not been based on a consideration of any individual investor’s circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice.  Individuals should consult their personal tax, accounting and legal advisers regarding any potential investment or strategy.  Any views and opinions are subject to change at any time.

This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized to do so.

Investment Advisory Products and Services:

NOT FDIC INSURED   NO BANK GUARANTEE    MAY LOSE VALUE

 

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You are required to read the following important information, which, in conjunction with the Terms and Conditions, governs your use of this website. Your use of this website and its contents constitute your acceptance of this information and those Terms and Conditions. If you do not agree with this information and the Terms and Conditions, you should immediately cease use of this website. The contents of this website have not been prepared for the benefit of investors outside of the United States. This website is not intended as a solicitation of the purchase or sale of any security or other financial instrument or any investment management services for any investor who resides in a jurisdiction other than the United States1. As a general matter, Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) is not licensed or registered to solicit prospective investors and offer investment advisory services in jurisdictions outside of the United States. The information on this website is not intended to be distributed to, directed at or used by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Persons in respect of whom such prohibitions apply must not access the website.  Under certain circumstances, BBH may provide services to investors located outside of the United States in accordance with applicable law. The conditions under which such services may be provided will be analyzed on a case-by-case basis by BBH. BBH will only accept investors from such jurisdictions or countries where it has made a determination that such an arrangement or relationship is permissible under the laws of that jurisdiction or country. The existence of this website is not intended to be a substitute for the type of analysis described above and is not intended as a solicitation of or recommendation to any prospective investor, including those located outside of the United States. Certain BBH products or services may not be available in certain jurisdictions. By choosing to access this website from any location other than the United States, you accept full responsibility for compliance with all local laws. The website contains content that has been obtained from sources that BBH believes to be reliable as of the date presented; however, BBH cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. The content contained herein is current as of the date of issuance and is subject to change without notice. The website’s content does not constitute investment advice and should not be used as the basis for any investment decision. There is no guarantee that any investment objectives, expectations, targets described in this website or the  performance or profitability of any investment will be achieved. You understand that investing in securities and other financial instruments involves risks that may affect the value of the securities and may result in losses, including the potential loss of the principal invested, and you assume and are able to bear all such risks.  In no event shall BBH or any other affiliated party be liable for any direct, incidental, special, consequential, indirect, lost profits, loss of business or data, or punitive damages arising out of your use of this website. By clicking accept, you confirm that you accept  to the above Important Information along with Terms and Conditions.

 
1BBH sponsors UCITS Funds registered in Luxembourg, in certain jurisdictions. For information on those funds, please see bbhluxembourgfunds.com



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