Investment Criteria

Aavin is a private investment firm that provides junior capital for ownership changes, business expansions, mergers and acquisitions, recapitalizations and other shareholder liquidity events.

For small business owners and management teams, intermediaries, and independent sponsors, Aavin is a reliable, experienced partner with over 200 cumulative years in successful investment and business development. Licensed with the Small Business Investment Company (SBIC) Program, Aavin assists the Small Business Administration (SBA) in its mission to bridge the gap between business owners’ need for capital and limited traditional sources of financing.

Geography and Industry

Located in the heart of the Midwest, we enjoy partnering with companies located in Middle America, however we have investment experience throughout the United States and are always open to considering investment in any appropriate U.S. based opportunities.

Aavin’s team has broad expertise in a variety of industries including manufacturing, business services, health care, information technology, retail and consumer services/products, and distribution.  We consider all industries and maintain diversified portfolios.

Financial Size

Aavin currently manages $87 million in capital across two funds. Our investments generally range in size from $1-$5 million.  We can secure all required senior financing through the bank relationships that we maintain as well as any additional junior capital needed through co-investor partners. We concentrate on lower middle-market companies with revenues in the $10-$40 million range with EBITDAs ranging from $1.5-$5 million.

Uses of Capital

Our focus is late-stage companies with positive cash flow and we look to support:

  • Owners who are interested in realizing value and getting liquidity for all or a portion of their current holdings
  • Owners who are interested in buying out other owners
  • Owners looking to refinance existing debt or otherwise recapitalize their balance sheets
  • Management teams seeking to acquire ownership in organizations they are currently managing or new enterprises in which they have expertise
  • Owners and management teams who need additional capital for expansion

We consider control positions as well as minority positions.

Investment Structure

Aavin provides junior capital through both subordinated debt and equity securities to complete a transaction. We structure our investments to fit the particular circumstances of each company we partner with or acquire, and we are open to both control or majority positions as well as minority interest investments.  Most of our invested funds are in current yield-bearing securities with equity interests, and we typically structure the financing to support a 5 year investment horizon.  As needed, we may assist in arranging senior debt financings from banks or additional junior capital from co-investment partners.  In all cases we want management to have material ownership interests in the companies in which we invest.

Governance

We know that the most important assets in all successful companies are the people. That is why our primary focus in all transactions is the management team: their expertise, their commitment to the company and their interest in working as a team with us to create value for all stakeholders. We partner with and back strong management teams to develop and execute the business strategy and to run the day-to-day operations of the companies in which we invest.

Aavin has a long and successful background in completing transactions and building and realizing value in small companies. We work closely and actively at the board level with our management partners. Through our board involvement we bring value to our partners in many areas such as treasury; growth strategies; management assessment, talent development and recruiting; and financial and operational systems development.