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What is Longvue?
I’ve pulled together a thread to give a detailed look at how it was built from the ground up, why we focus on the lower MM, and give an inside look at what a permanent capital partner looks like
… buckle up! http://www.longvue.com
I’ve pulled together a thread to give a detailed look at how it was built from the ground up, why we focus on the lower MM, and give an inside look at what a permanent capital partner looks like
… buckle up! http://www.longvue.com
Quick disclaimer: we are very collaborative and I’m making a push to spend more time finding ways to help, work with, & collaborate w/ those on a similar journey
I’ll document & learn publicly along the way
So reach out to connect http://www.longvue.com/connect
I’ll document & learn publicly along the way
So reach out to connect http://www.longvue.com/connect
There are lots of capital providers doing lower MM (<$10M EBITDA) investing
From traditional PE to search funds to independent sponsors to permanent capital vehicles
All with varying degrees of sophistication, capital, trustworthiness, and know-how
From traditional PE to search funds to independent sponsors to permanent capital vehicles
All with varying degrees of sophistication, capital, trustworthiness, and know-how
Being active in the market, you come to appreciate the differences between each type and the +’s and –’s
More importantly, you spend time understanding how you differ… and what this means for your partner companies + how to sharpen your edge to keep putting points on the board
More importantly, you spend time understanding how you differ… and what this means for your partner companies + how to sharpen your edge to keep putting points on the board
I got my first glimpse of real investing in NYC doing banking, specifically for mega fund PE groups:
The “best” flipped and grew assets under mgt, meaning (1) bought/sold over short time frames & returned profits as quickly as possible + (2) raised more and more outside capital
The “best” flipped and grew assets under mgt, meaning (1) bought/sold over short time frames & returned profits as quickly as possible + (2) raised more and more outside capital
… after all, more deals and assets under mgt = a larger slice for the investors
It is inherent in the model
It is inherent in the model
However, my perspective changed over the years as I spent more time with investors/families focused on creating LT wealth and as I cut my teeth building/operating within growing co’s
This was also when I started investing my own $ in the co’s I was helping influence outcomes w/
This was also when I started investing my own $ in the co’s I was helping influence outcomes w/
I developed an appreciation for (and experienced first-hand) the importance of people, business building, compounding results, and being patiently impatient... and how hard it can be to consistently do this well
It seemed backwards to me that many investors were set on growing AUM and flipping over 3-5 yr timelines
And losing out on the compounding advantages of LT thinking + expertise + team building. There was little doubling down on winners and instead only looking for the next deal
And losing out on the compounding advantages of LT thinking + expertise + team building. There was little doubling down on winners and instead only looking for the next deal
This observation led me down many rabbit holes, leading to one question in particular:
How can I most effectively build a permanent capital, growth-focused investment partner for owners & operators? Esp those w/ less than $10M of earnings but want to build to $25M+ of earnings?
How can I most effectively build a permanent capital, growth-focused investment partner for owners & operators? Esp those w/ less than $10M of earnings but want to build to $25M+ of earnings?
I love the people and companies in this end of the market, and knew I wanted to focus here
While most ignore or pass over in hopes of doing larger txns, I love the scrappiness, going from small to large, creating durability, and establishing mkt leaders
I’m a builder at heart
While most ignore or pass over in hopes of doing larger txns, I love the scrappiness, going from small to large, creating durability, and establishing mkt leaders
I’m a builder at heart
And I told myself I would only dive headfirst into something if it was set up in a way that allowed for:
- LT bets with LT people
- be a stable transition partner for biz owners + a growth partner for continuing operators
- no outside constraints/misalignment of incentives
- LT bets with LT people
- be a stable transition partner for biz owners + a growth partner for continuing operators
- no outside constraints/misalignment of incentives
It’s funny, I feel like the “Permanent Capital” terminology has been picking up a lot of steam
But where the “capital” in permanent capital comes from is a big influence on behavior and investor-owner alignment
It can be a tricky equation
But where the “capital” in permanent capital comes from is a big influence on behavior and investor-owner alignment
It can be a tricky equation
@ Longvue, we are lucky to be in a position where my partner and I only invest our own money, have a permanent capital mentality, and can make flexible, LT, growth-oriented investments alongside our operating partners
We’re building together, with our partners, for the long haul
We’re building together, with our partners, for the long haul
That said, when you build a best-in-class company, people come knocking, so permanent capital =/= hold forever w/ no exceptions
BUT there’s no greater feeling than having the flexibility to choose when that decision comes with our operator partners
BUT there’s no greater feeling than having the flexibility to choose when that decision comes with our operator partners
We have a wide range of opportunities we look at + a supportive balance sheet for building alongside our partners
My partner and I have done low single digit M investments to over $100M in one opportunity
My partner and I have done low single digit M investments to over $100M in one opportunity
And w/in our network, we’ve been fortunate to have some really great growth stories... having built 3 companies from less than $1M of earnings to north of $1B of EV
Weve lived the good, the bad, and the ugly in building lasting companies we’re proud of in communities we support
Weve lived the good, the bad, and the ugly in building lasting companies we’re proud of in communities we support
A big takeaway: capital partners get too caught up in the “finance” and woefully undercommunicate the importance of the people
The people you work with are the companies you build, and we spend a lot of time driving the right employee (and client) experience with our partners
The people you work with are the companies you build, and we spend a lot of time driving the right employee (and client) experience with our partners
We live/die by this sword. We invest in people, bc we believe its the most important factor for building meaningful co’s and relationships... + life is too short to work w/ people you don’t like
People, paired with LT thinking & acting, drives our compounding advantages
People, paired with LT thinking & acting, drives our compounding advantages
We keep things simple: we partner with operators we get to know well and execute on our playbook of taking co’s from “non-institutional” to “institutional”
All the while providing the stability of a LT partner and access to our network & resources to help influence outcomes
All the while providing the stability of a LT partner and access to our network & resources to help influence outcomes
A little bit more about Longvue (1/2):
- we’re based in Columbus, OH
- we only make a few investments per year... every company matters to us.
- we’ve made investments ranging from pets to security integration for commercial clients
- we’re growing our team
- we’re based in Columbus, OH
- we only make a few investments per year... every company matters to us.
- we’ve made investments ranging from pets to security integration for commercial clients
- we’re growing our team
More about Longvue (2/2):
- we invest in industries we can influence outcomes in
- but gravitate toward B2B service co’s, asset-light, fragmented industries, low NPS scores
- we love the midwest, given its out back yard, but partner all across the US
- we invest in industries we can influence outcomes in
- but gravitate toward B2B service co’s, asset-light, fragmented industries, low NPS scores
- we love the midwest, given its out back yard, but partner all across the US
How we make it happen:
- we only invest our own money... no outside capital or obligations
- we are growth-oriented... cash flow is used to build the business, not cover our overhead
- we are flexible and can do minority, majority, and other (simple) structures
- we only invest our own money... no outside capital or obligations
- we are growth-oriented... cash flow is used to build the business, not cover our overhead
- we are flexible and can do minority, majority, and other (simple) structures
Our writing + how to work with us:
Our memos: http://www.longvue.com/our-memos
Newsletter sign-up: http://www.longvue.com/newsletter
Work with us: http://www.longvue.com/work-with-us
Intermediaries: http://www.longvue.com/intermediaries
Our memos: http://www.longvue.com/our-memos
Newsletter sign-up: http://www.longvue.com/newsletter
Work with us: http://www.longvue.com/work-with-us
Intermediaries: http://www.longvue.com/intermediaries
I have never been one to “shout anything from the rooftop”... but if there is one thing I’ve meaningfully changed my mind on over the years, it is the value of learning in public and putting yourself out there as you build... this is a direct reflection of that mindset change.
This was a long thread, but thanks to those who are supportive and interested in the journey
Look forward to finding ways to collaborate
Look forward to finding ways to collaborate
