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About Monument Advisors, Inc. Monument Advisors, Inc. is an Indianapolis-based private equity firm that manages our family of funds. Monument focuses on management buyins, management buyouts, leveraged buyouts, and recapitalizations in the microcap market. We partner with management teams to acquire and help build companies within niche service, distribution and manufacturing industries with enterprise values between $8 and $20 million.We manage Monument Capital Partners 2, L.P. (“MCP2“), a $22.5 million private equity fund raised in 2000. We invest the Fund in increments from $1 million to $3 million in the equity portion of management-led and other leveraged acquisitions. We also make follow-on investments in our portfolio companies, to support additional acquisitions and expansion. Collectively, the Managing Directors of Monument Advisors have over 50 years of experience investing in the lower middle market, and have developed investment expertise across a broad range of issues and industries. What is our Strategy? Monument has provided junior capital, in the form of both equity and debt, primarily for microcap, service, distribution, and manufacturing companies with defensible niches, located in the Midwest. Monument’s focus is primarily in microcap companies (i.e., those with market capitalizations below $20 million). We believe investing in such companies will allow us to maximize returns given the range of EBITDA multiples in acquisitions of these companies are typically less than those with market capitalizations in excess of $20 million. Monument partners with members of management and may partner with other private equity funds and consider larger transactions, but only if they meet the same criteria as microcap transactions. Monument provides majority or controlling equity capital for management or leveraged buyouts involving a transition transaction or recapitalization. Monument seeks control equity investments, primarily in microcap companies located primarily in the Midwest in service, distribution and manufacturing industries. Monument invests in companies who compete in niche industries where the size of the industry may be smaller than $500 million. Monument focuses its investment efforts on the leading companies in those niche industries where the company can grow both organically and through acquisition. We typically look to acquire companies with the following characteristics:
What is Monument’s Philosophy? Monument’s philosophy upon acquiring a company is to first understand what makes the business successful and who makes the business successful at all levels. We do not believe in immediate and wholesale changes upon the acquisition of a company. Monument invests in a business because of its track record and its penchant for continued success. The “Monument Philosophy” is to invest time in understanding the company during the first 6-12 months of ownership. We believe it is important to learn how the company has succeeded for the years prior to our ownership. Since Monument views itself as an owner, not just an investor, we spend a significant amount of time prior to the acquisition to coach management teams on learning the business before making major changes to a company. Ultimately, after Monument and management have had time to learn and understand what has made the company successful, changes may be implemented that will help enhance the business. We are acutely aware that change after an acquisition will be inevitable for many reasons; however, we strive for change for the right reasons, not just for the sake of change. Monument has Midwest Regional Focus and Deal Sourcing. Because of our active involvement in the management and ongoing affairs of our companies, we seek opportunities that are easily accessible within the Midwest. The founders of Monument have lived and worked in the Midwest their entire lives and, as a result, have built many close relationships with regional intermediaries and deal sources, in addition to historical relationships with bankers, lawyers, and accountants that serve companies of Monument. We will market primarily to Indiana, Wisconsin, Ohio, Michigan and Illinois, and will evaluate opportunities outside the Midwest, if sponsored by one of our intermediaries. Monument Targeted Industries. Although we will look at industries where it has achieved previous investment success and/or where its management team members have spent time in operating positions, we are generally agnostic with respect to industry focus. We seek dominant leaders in niche service, distribution, and manufacturing opportunities where the company has a defensible business model and good growth opportunities, regardless of specific industry classification. Management Equity Participation. We believe management equity participation is critical to the success of any equity investment as it promotes alignment of all business and economic interests while striving to create overall shareholder value. Monument believes management determines the company’s success regardless of the strength of the business fundamentals, cash flows or historical performance. We typically do not take a “class” approach to equity by dividing the equity into preferred equity and management’s equity into common. Rather, we prefer to invest alongside management at the same layer of common equity to promote a unified approach to growing and developing the business. Additionally, each Monument management partner is a board member of its respective company. Monument allows owners to invest in three ways, (i) carried equity interest that vests over the life of the investment, (ii) purchased equity (at the same price as Monument’s equity) and (iii) incentive equity. As a result, management generally owns a significant (10%-25%) amount of the company primarily. We pay our management partners market salaries and bonuses; however, equity ownership is the primary compensation motivator for each manager. MCP2 (Monument Capital Partners 2, L.P.)
MCP1 (Monument Capital Partners 1, LLC)
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