Our Focus

We invest in the lower end of the mid-market in the U.S., one of the most difficult to access, but also one of the most profitable segments of the private equity market.

Significant Value

By partnering with industry experts that bring solutions to issues like:

– Under-developed strategic plans

– Limited management depth

– Poor financial and management reporting and metrics

– Capital constraints that limit growth initiatives

Lower Transaction Multiples

driven by the lower competition and advantageous investment processes

– Lack of an active, professional and independent board of directors

High number of companies

in fragmented markets. Lower middle market accounts for 86% of U.S. companies but only 20% of the capital in private equity

Multiple Expansion

derives from the spread between valuation multiples in the exit as the business scale and become more sophisticated

Co-Investment Criteria

ICP Group will typically invest in control situations alongside financial sponsors with industry specialization in mature companies with EBITDA between $5MM to $50MM with a preference for founder-owned and family-owned businesses.

Strong Competitive Positioning

Leading market share or well-established brand or service.

Strong Management Team

Seasoned and solid management team with long-history with the company or previous industry experience.

Attractive Transaction Dynamics

Reasonable valuation, moderate leverage, and considerable alignment of interests.

Attractive Business Model

Companies with strong, defensible, and proven business models (differentiated product or service, high value-added product, high barriers to entry, stable or recurring revenue, low customer concentration, etc.)

Solid Financial Profile

Double-digit EBITDA margins, robust historical growth, and significant free cash flow generation.

Value Creation Opportunities

Significant and tangible organic and inorganic value creation opportunities with a sound growth plan in place.

Growing Industries

Strong industry dynamics with attractive tailwinds.

Fund Criteria

ICP Group seeks to partner with top-tier private equity managers with the potential of being co-investment partners.

Alignment of Interests

Funds in which managers invest a meaningful portion of their personal net worth, and their compensation is balanced and linked to outperformance.

Proven Investment Strategy

Long-standing history and success with deep sector expertise.

Strong Teams

Strong Teams with experience working together; stable teams of experienced and respected professionals.

Value Creation

Demonstrated ability to create consistent growth through operation, strategic, organizational and financial improvements.

Strong Returns and Co-Investments

Private equity managers with top quartile and low vitality historical returns that offer co-investments to limited partners.