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Investment Philosophy

Focus on building value

Our investment philosophy begins with the belief that a strong management team, possessing an owner’s mentality, is the key to building superior long-term value. Raymond James Capital believes that most successful investments are those done in partnership with proven management teams who respond positively to having or retaining operating autonomy and an ownership position in their business. We strive to be an active and responsive partner with owners/managers, but will not interfere in the day-to-day operations of the business. Management teams are expected to maintain a meaningful equity stake in their company, such that they, along with their incentive compensation, are able to build significant wealth through the growth of the business.

Investing in growth

Raymond James Capital’s investment philosophy has been further defined by our individual and corporate experience in financing and advising successful growth companies. We believe that small- and medium-sized growth companies provide the optimal opportunity to produce superior investment returns. This focus on growth companies, which is seen in Raymond James’ investment banking and research organizations, allows us to better evaluate investment opportunities and add value to our portfolio companies.

What we look for

Raymond James Capital is interested in situations where there is a clear opportunity to enhance the value of the business through our financial and board-level involvement in partnership with management. Companies in which we invest have the following characteristics:

  • An outstanding management team with a proven track record in their industry and with the desire to acquire or retain significant equity ownership in order to reap the economic benefit of the value created by their efforts;
  • A history of profitable operations with EBITDA after adjustment for owner-related expenses of greater than $5 million for the prior 12-month period;
  • A strong, defensible market niche supported by leading market share, proven technology, proprietary concepts or recognizable brand names; and
  • Attractive exit opportunities within five to 10 years, supported by growth opportunities and operational excellence.

We do not invest in start-ups or early stage companies.