Patrick L. Beach

Functions as a College/University

Alternative investment manager

Merchants Capital Partners invests in middle-market service businesses with recurring revenue. They focus on the telecommunications services, restaurants, business services and consumer services sectors. They look for expansion-stage growth companies with positive cash flow that are run by experienced management teams. They invest in business models that have market protection or a structural barrier to entry such as a license, a franchise, long term contracts or a dominant market share in a niche industry. Companies should have enterprise value greater than $10 million. Initial investments range from $3 million to $4 million, but they may larger investments along with other investors. The firm participates in late-stage growth capital, acquisitions, recapitalizations, buyouts, industry consolidations and corporate divestitures. Merchants Capital Partners avoids auctions and prefers negotiated transactions. They will serve as a control or non-control investor. As a non-control investor, board representation and protective rights are required. Merchant Capital Partners targets an exit within three to five years, which usually occurs through sale or recapitalization.