Investment Criteria
Although Trinity Private Equity Group does not have a fixed mandate or charter, we seek investments that have a compelling risk vs return profile. We have the flexibility to be opportunistic but are extremely disciplined regarding protection of principal and our due diligence process.
Operating Companies
Size (one or more of the following usually apply)
- Annual Revenues greater than $10 million
- EBITDA of greater than $2 million
- Enterprise Value greater than $5 million
Industry (the following represent industries that we focus on)
- Consumer Products
- Light Manufacturing/Distribution
- Consumer and Commercial Services
- Strongly Branded or Patented Products
Product and Service (one or more usually apply)
- Product or service with strong value proposition
- Niche or Protected Market
- Intellectual property or other barriers to entry
- Scalable with rapid growth opportunities
Other Company Characteristics
- Stable or growing customer and revenue base.
- Primary operations in the U.S.
- Strong Existing Management
- No extreme customer concentration
- Capital efficient business model
Governance
- Board seats commensurate to ownership
- Quarterly board meetings with monthly financial performance requirements
- Focus on 3 year strategic business plans with strong financial controls
Preferred Types and Size of Investments
- Equity Placements of $2-$5MM in the form of Control Investments
- Structured Debt Placements of $1-$5MM in Minority Investments
- Will work with other PEG’s as co-investors
Other Opportunistic Investments
We also co-invest with our Operating Partners in situations where the risk adjusted returns are compelling and where we can add value through our due diligence, underwriting and capital sourcing abilities.
Examples include:
Distressed Real Estate Purchases
Non-Performing and Performing Notes backed by Commercial Real Estate
High Yielding Investment Real Estate
Subdebt and Mezzanine Debt in Real Estate Projects
Return requirements are generally current yields in excess of 10% with all in returns in excess of 20% annualized (IRR).
