Philosophy
Value-Added Partner
CYwP Funds seek to add value to our partners. As seasoned investors with extensive experience in building businesses, we provide informed, strategic, non-Board level advice regarding operations, finance, acquisitions, marketing, business development and sales. We believe that our capital commitment combined with our financial and operational experience delivers a competitive advantage to each of our portfolio companies.
Objectives
Investments in Operating Companies
CYwP Funds’ target investments in operating companies typically range from $500,000 to $5 million with sales of usually more than $5 million and EBITDA of more than $500,000. We seek to invest in companies that:
- Pay current returns significantly higher than bank CDs, stock dividends, or government, municipal or investment-grade corporate bonds.
- Make interest or cash flow payments on a quarterly basis.
- Seek to generate attractive current returns while maintaining the ability to benefit from capital appreciation.
Investments in Commercial Real Estate
CYwP Funds’ target investments in commercial real estate typically range from $500,000 to $5 million. We seek to invest in commercial real estate that:
- Pays current returns significantly higher than bank CDs, stock dividends, or government, municipal or investment-grade corporate bonds.
- Makes interest or cash flow payments on a quarterly basis.
- Seeks to generate attractive current returns while maintaining the ability to benefit from capital appreciation.
Criteria
CYwP Funds pursue investments in operating companies and high-yield real estate opportunities. Investment candidates should meet the following criteria:
- Privately owned with an established operating history
- Revenue greater than $5 million and EBITDA of more than $500,000
- Skilled, knowledgeable and committed management teams with meaningful ownership interests and experience building enterprise value
- Historical and sustainable high margin cash flow with minimal cyclicality
- Funding identifiable growth initiatives and inflection points
- Solid industry fundamentals with favorable prospects and defensible market positions
- Effective financial controls and information systems with a history of profitability
- Real estate (office buildings, retail, multifamily housing and hotels) with sufficient cash flow from existing leases to support a quarterly coupon
CYwP Funds are mainly industry agnostic, but we will not invest in oil and gas exploration. We also do not invest in early or developmental stage businesses, turnarounds or distressed situations.
Use of Funds
CYwP Funds’ investments are used for the following purposes:
- Accretive acquisitions of competitors
- Product or service extensions
- Geographic expansion
- Liquidity to support portfolio diversification of highly profitable business owners
- Acquisition of real estate with sufficient cash flow from existing leases to service senior debt as well as pay quarterly distributions