Atlantic Street Capital
 
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INVESTMENT FOCUS

Atlantic Street is a control private equity investor which seeks to invest equity capital in U.S. based distressed and deep value companies with revenues between $25 and $150 million.  Within the lower middle market, we focus on basic industries including: consumer products and services; manufacturing and distribution; business services; and, transportation and logistics. 

Atlantic Street targets investment opportunities that traditional private equity sponsors may find too risky due to transactional and/or operational challenges.

Distressed Opportunities
We define distressed opportunities as businesses facing bankruptcy and/or with negative cash flow. These situations present difficult business conditions and unique investment requirements:

  • In or out-of-court balance sheet restructuring
  • Negative cash flow
  • Vendor management and negotiations
  • Daily/weekly cash management focus
  • Management turnover/change
  • Business model realignment

Deep Value Opportunities
We define deep value opportunities as financially healthy businesses that trade at very low entry multiples because they present unique business challenges. The kinds of challenges that can create deep value opportunities include:

  • Under developed financial systems and controls
  • Customer concentration
  • Founder/entrepreneur needs support growing the business
  • Founder/entrepreneur disengaging from the business
  • Out-of-favor industries
The fund seeks to invest between $8 to $10 million of controlling equity capital per deal including add-ons.  Atlantic Street is comfortable investing in debt and preferred equity in addition to common equity, but always with a clear path to control.  We prefer but do not require that current management remains in place.