Investment Overview

LCM’s private equity investments are primarily allocated through direct investments, as well as co-investments with specific financial sponsors on a deal-by-deal basis. LCM typically invests between $500k - $10mm in its portfolio companies.

Our private debt, private real estate, and private equity secondaries, including fund restructuring investing, are all managed primarily through trusted affiliates of LCM, along with a select group of highly specialized external managers.

Our public equities and global financial markets trading activities are managed internally and through select use of external managers.

Search Funds

LCM pursues investment strategies outside the scope of traditional sponsored buy-out deals as the firm provides flexible capital solutions to lower middle market companies with revenues between $10mm - $100mm, and annual cash flow of $2mm - $20mm.

Accessing the vast market for small- and medium-sized businesses, LCM supports enterprising entrepreneurs that raise capital to finance the search for a privately-held company for the purpose of acquisition, operation and growth. These “Search Funds” seek and acquire majority control in one small, “operationally learnable” and scalable company, typically for ownership transitions and leadership succession.

After years of direct investing in the space, LCM has several LP commitments to excellent funds, such as Peterson Partners and Search Fund Partners. LCM will still occasionally back a Searcher at the onset or evaluate equity gaps directly.

Special Situations PE and Venture Capital

LCM also has a particular interest in strategic special situations and private fund vehicle restructuring and secondaries.

Trusted partners, such as our affiliate, Cedar Springs Capital, and certain external fund sponsors deploy LCM’s capital in shorter-duration private investments, where existing fund investors are seeking liquidity and are willing to sell their interests at a meaningful discount to Net Asset Value prices. The result provides LCM with downside protection and the opportunity for more attractive risk-adjusted returns.

Further, LCM has several decades of demonstrated flexibility in direct early- and later-stage venture opportunities across investment cycles, industries, and capital needs. These earlier-stage minority investments provide capital to high-performing teams for growth equity, acquisition capital, or recapitalization.

LCM’s approach to both special situation and earlier-stage investing often involves a higher-touch role as engaged Board advisors, motivated to spend our time, talent, and treasure co-laboring with an entrepreneur whose purpose and business practice find strong alignment with our firm’s vision and values.