Investment philosophy

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.

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

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

Driven by the lower competition and advantageous investment processes

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

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

multiple expansion

significant value

lower transaction multiples

hihg number of companies

significant value

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multiple expansion

lower transaction multiples

hihg number of companies

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 industry dynamics with attractive tailwinds.

Leading market share or well-established brand or service.

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

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

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

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.)

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

growing industries

strong competitive positioning

strong management team

value creation opportunities

solid financial profile

attractive business model

attractive transaction dynamics

Significant Value

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

Fund Criteria

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

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

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

Long-standing history and success with deep sector expertise.

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

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

strong returns and co-investments

aligment of interests

proven investment strategy

value creation

strong teams

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.