Growth Mindset
WHAT WE DO
Our goal is to serve as catalysts of organizational transformation to the businesses in which we invest by providing strategic capital, analytical rigor, a fresh perspective and a sense of urgency to historically under-resourced companies. While each situation is unique, we operate within a highly-defined framework in which we offer a collaborative approach for management teams and support them in the transformation of their businesses through strategic guidance, leadership development and process improvements.
The key elements of our approach are as follows:
We focus on situations where we believe we can have the greatest relative impact on value creation and target investments in smaller companies operating at the lower end of the middle market. We have extensive experience working with entrepreneurial businesses and share a deep understanding of both the challenges and opportunities that they represent. We have cultivated a broad network of business brokers and intermediaries and are often able to capitalize on the idiosyncrasies and inefficiencies inherent at this end of the market to acquire fundamentally-sound businesses at attractive valuations.
Data drives our decision-making process and allows us to uncover hidden opportunities often overlooked by others. Prior to any investment, Sidereal works with a target company’s management team to develop a clearly defined and articulated investment thesis and growth plan. This investment thesis is supported by rigorous financial and business analysis through which we seek to distill the core value drivers of the business and structure investments with asymmetrical risk-return profiles.
Once we establish a presence in a given market segment, we will generally seek to execute a "buy and build" strategy whereby we acquire and integrate complementary businesses to the platform company. In addition to providing scale, these acquisitions will often help to diversify and broaden the customer base while expanding product offerings.
Sidereal is a control investor that takes an active role in facilitating the transition from owner-operator to institutional management in its investments. We serve as a value-added partner, providing supplemental services which allows our management teams to focus on optimizing the core operations of their businesses. Typically, our support functions include: (i) the identification and closing of management skill gaps; (ii) the upgrading of finance and operating systems, analytical processes and governance; (iii) design and execution of the acquisition strategy, and (iv) implementation of cost-saving initiatives, among others.
We are guided by a clear set of principles and values to which we strictly adhere throughout our investment process
We relentlessly pursue continuous improvement within ourselves, our firm, and the companies in which we invest.
Our success is predicated on our ability to collaborate across a broad group of stakeholders and demands that we build a high level of trust. As such, we maintain a categorical commitment to transparency, authenticity and accountability in all of our interactions.
We celebrate diversity and value each individual’s complementary strengths and contributions. In searching for creative solutions to complex problems we assimilate multiple perspectives and cultivate a safe environment for healthy debate, conflict and integrated thinking.
We are judicious stewards of our collective resources. We are governed by an iterative, data-driven approach in our decision making process and we adhere to a pragmatic strategy based on achieving incremental, attainable goals.