SOURCE: Triton Pacific Capital Partners

February 20, 2008 11:00 ET

Private Equity Firm Triton Pacific Takes Hands-On Approach to Investing in "Under The Radar" Entrepreneurial Companies

Best-in Class Value Enhancement Program(SM) Provides Small to Mid-Size Companies Access to Capital, Strategic Guidance and Operational Expertise

LOS ANGELES, CA--(Marketwire - February 20, 2008) - When you've been savvy enough to build a successful and profitable entrepreneurial company, but growth is beginning to plateau, competition is getting stiffer, or industry dynamics have changed, where do you turn for help? Well, one option might be to approach a private equity group for additional capital. The challenge with an entrepreneurial company trying to interest private equity investors is that regardless of the compelling nature of their business model, these deals are often just too small to attract institutionally backed firms.

For many small companies (under $50 million in revenues) the 'big guns' of private equity would have neither interest nor inclination to get involved. Most buyout groups would not consider the upside of looking at this "below the radar" community for a variety of reasons, including the difficulty in sourcing and managing the businesses, and the fact that they've raised funds that are so large that they simply have to make larger investments to be meaningful.

Enter Triton Pacific Capital Partners, LLC. This Los Angeles-based private equity group has been guiding small to medium sized businesses to greater success since 2001. With a combination of capital, strategic guidance and operational expertise, Triton Pacific effectively partners with these entrepreneurial companies to build more valuable businesses. It does this by employing a time-tested business methodology known as its Value Enhancement Program(SM) designed to support the growth of these businesses as they transition to the next level of professionalism.

"We recognize and understand that attracting capital is a challenge for many small and mid-sized firms trying to move beyond the state of entrepreneur," said Triton Pacific managing partner Ivan Faggen. "Unlike most private equity firms, we seek to partner with management of established, profitable companies too small to attract alternative sources of capital. Triton Pacific provides these companies with access to growth capital, strategic guidance and operational expertise through its team of executives with years of financial and executive management experience."

A Unique Opportunity

Triton Pacific Capital Partners has also developed a unique approach to working with its investors by providing current cash distributions in addition to the long term gain potential most commonly associated with private equity investing. The company has assembled a highly qualified team with expertise in finance, accounting, operations, capital markets and business development to service this "under the radar" market, and to make it attractive to investors as well.

By serving a market segment often overlooked by traditional private equity funds, Triton Pacific is able to fill a void in the lower middle market with companies ranging from $5 million to $50 million in revenues. Today, Triton Pacific maintains a majority investment in 14 companies with an enterprise value in excess of $135 million at the time of their acquisition.

Through a series of funds, Triton Pacific is able to provide high net worth individuals and family offices opportunities to greater portfolio diversification, potential for significant capital gains upon divestiture and most uniquely, quarterly distributions. Triton Pacific Capital Partners understands that in today's competitive investment market there are limited opportunities for non-institutional investors to participate in this attractive asset class. This dearth of opportunity seems to primarily be a function of conventional private equity firms focusing on substantially larger companies and therefore requiring much larger investments than wealthy individuals might prudently allocate to this part of their portfolio.

"There are many qualified investors within the RIA and family office communities looking for diversified and balanced portfolios with high targeted returns," noted Faggen. "Through a rigorous process of due diligence we are able to provide our investors with great opportunities that they will not find elsewhere."

Priding itself on well-honed business insights that it uses to identify potential portfolio companies, Triton Pacific has developed a philosophy that serves as the company's business compass: Partner with strong management, focus on proven business models, generate consistent cash flow, invest in defensible market niches and stick with core competencies. By focusing on three vertical markets, healthcare services, software/IT and basic industries, Triton Pacific is able to optimize the value for both the companies in its portfolio as well as those investing in these companies. Additionally, Triton Pacific's highly seasoned industry veterans take an active hands-on approach with each and every portfolio company.

Investment Strategy

"We believe that the key to successful investing is in managing risk in the pursuit of higher absolute returns for its investors," noted Faggen. Triton Pacific has developed an arsenal of tools to help manage these risks including:

--  Value Discipline -- By focusing on smaller companies operating "under
    the radar" of large institutionally funded private equity investors, Triton
    Pacific is able to be a true value investor, "buying right" and thus
    minimize investment pricing risk.
--  Partnership -- Triton Pacific leverages the operational experience of
    its team and operating partners by partnering with successful
    entrepreneurial companies that utilize the embedded growth from existing
    business models, reducing the execution risks of its investments.
--  Structure -- Leveraging the depth of the firm's experience in finance,
    strategic development, operations and accounting, Triton helps to mitigate
    downside risks for investors, while simultaneously creating optimized value
    for its portfolio companies.

"We are truly setting a new standard as a private equity firm, dedicated to small to mid-size companies," said Faggen. "By providing active hands-on professionals who partner with management, we effectively and rapidly grow our portfolio companies. The result is that we provide our investors with superior absolute returns upon divestiture."

About Triton Pacific

Founded in 2001, Triton Pacific Capital Partners, LLC, with headquarters in Los Angeles, California, is a well-established private equity firm that invests in entrepreneurial small and mid-size companies with strong growth prospects. Targeting "below the radar" companies, Triton Pacific seeks to partner with management of established, profitable companies too small to attract alternative sources of capital. Through its Value Enhancement Program(SM), Triton Pacific employs its time-tested business model in conjunction with a well-developed arsenal of proprietary in-house resources. The firm is able to offer its portfolio companies growth capital, strategic guidance, and operational expertise designed to enable companies to professionalize these businesses with the ultimate goal of creating more revenues, profits and enterprise value. Today, Triton Pacific maintains a majority investment in 14 private equity companies with an enterprise value in excess of $135 million at the time of their acquisition. More information can be found at

Contact Information

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