Investment Strategy

SNH Capital Partners

our focus

SNH Capital Partners makes investments in companies that have up to $75 million of annual EBITDA. Our strategy is built on the following investment criteria:

Our investment strategy rests on two principles. First, invest in high-quality, top-performing businesses. Second, rely on the expertise of the founders and current leaders of those businesses. A majority of SNH investments come from partnering directly with founders and executive teams that have owned and operated their business for decades, many of whom choose to stay on and provide leadership continuity for the company.

Value Creation

The focus at SNH is long-term value creation. We prefer to hold our companies indefinitely. In contrast, many investors have a three-to five-year exit horizon, forcing a focus on short-term gains. Investments that may take a little more time but have great value creation simply don’t fit in that model. At SNH, we make purely rational investment decisions and support our founders to do the same.

Unique Source
Of Capital

SNH uses a conservative capital structure that allows us to invest for long-term growth and provides safety when difficult economic conditions arrive. By contrast, traditional private equity firms often place considerable debt on a company during a transaction, which increases the risk of bankruptcy or restructuring. For our partners who continue to maintain equity in the companies they have built, this is often their most valuable asset. By partnering with SNH, our founders and executives enjoy increased protection and flexibility.

Long-Term Capital Advantages

  • Ability to compound returns with long-dated hold strategy
  • A conservative approach to debt usage, ensuring a low-risk approach to the enterprise
  • Freedom from artificial exit horizons
  • Patient capital approach paired with long-term thinking and strategy
  • Long-dated investments allowing true partnership with best-in-class management
  • Supplement resources with high-powered in-house consulting team to develop, enhance and implement best practices
  • Focus on EBITDA growth through operational excellence and reinvestment strategy

Differentiated Model

SNH Capital Partners’ Approach

Traditional Private Equity Model

As a buyer of choice, SNH reviews hundreds of companies annually for potential investment. The combined quality and quantity of investment opportunities examined by SNH professionals has been the cornerstone of our proprietary sourcing approach and is attributable to:

  • Ongoing industry participation and current delivery of strong proprietary deals
  • Extensive investment network – SNH enjoys extensive industry contacts through our network of portfolio companies and the comprehensive experience of our investment professionals
  • Reputation for integrity and excellence – Because of our longstanding reputation within the business community, potential partners often approach SNH directly