United States Growth Funds

PE/Buy-Out · Fort Worth (United States)

PE/Buy-Out

Series D

Growth Capital

Consumer

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About

United States Growth Funds is a private equity firm specializing in direct and fund of fund investments. For direct investments, the firm seeks to in subordinated securities in lower middle market companies. The firm typically invests in management buyouts, mezzanine, recapitalizations, consolidations, add-on acquisitions, growth capital, and corporate divestitures. In special situations, the firm invests in pre-IPO minority investments, bridge ownership and creditor transitions, DIP and bankruptcy restructurings, public company bridge capital, and going private transactions in the form of equities, shares, convertible debentures, and private loans. It invests in privately placed securities and notes of private businesses not available in the public markets. It prefers to invest in later stage, emerging growth, and mature companies. The firm does not invest in auto parts distributed through chain auto part stores; office furniture; oilfield service business; perishable food product companies including meat, seafood, bakery goods, and vegetables; private label manufactures; and commodity priced products. It does not consider unprofitable business from cyclical industry. The firm also acquires mature, orphan brands in the food sector, personal care, and household sectors. It invests in consumer packaged goods namely over-the–counter products like food & beverage products, pet products, personal products, and household products; products sold through retail channels like food, drug, mass, club, c-store, etc; shelf stable products; branded or private label products; and products that ideally would have a premium positioning. The firm invests in following consumer packaged goods, coffee and tea, confectionary products, edible oils, frozen foods, prepared and preserved foods, seasonings and preservatives, sweeteners, consumer product brands including natural, and regional foods, functional food, sauces, marinades, dressings and beverages; branded (non-commodity) products; branded specialty foods and consumer packaged goods with a focus on gourmet foods, natural products, organic foods. The firm invests in companies based in the United States with a focus on companies that have headquarter office located within one hour drive of an airport with direct air service from Dallas, Texas. It invests up to $20 million of equity per transaction in privately-held companies with enterprise values between $10 million and $250 million, EBITDA between $2 million and $10 million, revenue for platform companies between $50 million and $250 million, and revenue for add-on acquisitions between $3 million and $50 million. The firm prefers direct control positions in the portfolio companies and also considers co-investment opportunities. It generally acquires seat on the Board of Directors. The firm generally holds an investment over a period of three years to five years and exists through sales to strategic and financial buyers and public offerings. It has received partial realizations through a combination of dividends, redemptions, secondary sales, and sales to management. United States Growth Funds was formerly known as KBK Mezzanine Partners. The firm invests through its personal capital and balance sheet investments. United States Growth Funds was founded in 1992 and is based in Fort Worth, Texas.

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