Investment Approach
We identify investment opportunities with superior risk-adjusted returns sourced by utilizing our extensive network, to create proprietary deal-flow. We devote significant effort analyzing industry trends, understanding competitive landscapes and developing relevant expertise and investment themes to help achieve the return objectives of our investors.
Investment opportunities may include direct investments made by the firm or strategic partnerships, including forming or seeding new investment products with external managers that bring a complementary expertise to Cynosure.
For direct investments, Cynosure’s core focus centers on bringing together Founder and Management-Owners with Aligned Capital.
Founder & Management-Owners (“FMOs”): Exceptional Founder & Management-Owners seeking partial liquidity or growth capital, but having no interest in selling 100% or entering the 3-5 year private equity treadmill; they believe in the long-term growth prospects of their businesses.
Aligned Capital: Long-term investors who believe private markets offer outsized returns and that all too often those returns are lost to friction costs associated with traditional offerings that do not align with investor objectives.
Every founder / management team is unique. Capital structure flexibility enables Cynosure to be true partners to management, finding the right capital solution for each situation.
Portfolio Companies
We want to partner with management teams who are interested in continuing to be meaningful owners and are invested in seeing the value of their company grow. We look for partners who can collaborate with us on the best route to value creation over the right investment timeline, as opposed to some arbitrary exit deadline set by an investment fund.
Specifically, we look to invest in small to mid-sized companies with at least $5 million of EBITDA.
Targets for acquisition must demonstrate significant growth prospects, a meaningful cash flow profile, and the ability to differentiate their business model from that of its competition.
By investing throughout the capital structure, making minority as well as control investments, and providing long-term and or follow-on capital, we are able to differentiate ourselves from traditional alternative managers.
Flexible Approach
Cynosure is comfortable taking both control and minority positions and will invest throughout the capital structure, including common equity, preferred equity, subordinated debt, debt, and other creative structures.
Core Portfolio
We have partnered with the following portfolio companies to provide a collaborative capital solution.
GPS Hospitality
Investment: 2014, 2015, 2016, 2017, 2019
Status: Current
Quick service restaurant franchisee operating over 400 locations
Avalon Advisors
Investment: 2015
Status: Current
Registered investment advisor offering investment management and financial advice
EPIS, LLC
Investment: 2016
Status: Exited
Vertical SaaS business focused on the power and utilities sector
Brand Bank
Investment: 2016
Status: Exited
Bank serving businesses, municipalities, and individuals in the Atlanta Metropolitan Statistical Area
Savant
Investment: 2016
Status: Current
Independent, fee-only wealth management firm
Prumentum Group
Investment: 2017
Status: Current
Wealth-Tech company created to make financial planning accessible, regardless of net worth
Steward Partners Global Advisory
Investment: 2019
Status: Current
Independent wealth advisor, with professionals delivering multifaceted financial solutions
Visible Supply Chain Management
Investment: 2019
Status: Current
Industry leader in shipping and fulfillment services for small to midsize businesses
Gold Medal Pools & Construction
Investment: 2019
Status: Current
Turnkey construction solutions for customized hardscapes & water features
SG Credit Partners
Investment: 2019
Status: Current
Leading middle-market specialty lender for borrowers with limited access to credit markets
Black Rock Coffee Bar
Investment: 2020
Status: Current
High growth, drive-thru oriented retail coffee chain
Opportunistic Portfolio
Anglo International Shipping
Investment: 2018, 2019
Status: Current
Owner and operator of second-hand vessels focused on the dry bulk shipping market
FUND FORMATION
Created with the support of Cynosure
BuildGroup
Status: Current
Permanent capital vehicle focused on B2B software
Fenway Summer Ventures
Status: Current
Venture fund focused on investing in early stage companies in the financial services industry
Avenue Capital Group
Status: Current
US Value Credit Fund
“These examples are provided for informational purposes only and do not constitute investment advice, a recommendation, or an offer of solicitation. The reader should not assume that an investment in the portfolio companies reflected here was or will be profitable."