Prairie Capital typically invests in privately held U.S.-based companies with annual cash flows of $3 million or more and recurring annual revenues in excess of $15 million. We participate in several types of ownership change transactions, including management and leveraged buyouts, recapitalizations, and external growth situations. We have the flexibility to play a variety of roles in a transaction and have the ability to invest throughout the capital structure, typically through:
At Prairie, our goals are to create value within our fund of portfolio companies and provide value to our partners in each individual investment. We often invest equity and subordinated debt in the same company, structuring the security type to meet the specific requirements of the parties involved.
We can react quickly to market opportunities and provide funding along the continuum of of junior capital—from control equity to coupon-only subordinated debt. Our experienced professionals will execute every stage of the transaction quickly and capably, from initial review and term sheet preparation through due diligence and documentation to the deal close.
Prairie Capital is structured with a broad and diverse investment base, with no large concentration in our committed investor group. This gives us independence in executing our strategy, making investments, and managing portfolio companies. We seek to add strategic value at the Board level and rely on current company management and the active sponsors to execute company strategy.
What We Look For
Prairie Capital focuses on niche manufacturers, business services, consumer products, marketing services, specialty chemical, and food businesses that meet the following criteria:
• A defensible market niche, reflected by above-average margins and stable primary demand
• An experienced management team that is invested in their business
• Annual cash flows of $3 million or more
• Recurring annual revenues in excess of $15 million
• Privately held and based in the U.S.
Prairie Capital focuses on companies with stable cash flows. We do not invest in early-stage companies, turnarounds, or companies with project-based revenues. We do not offer bridge financing.
