Investment Criteria

Cardinal seeks to partner with superior management teams in growth-oriented, opportunistic niches. We invest primarily in majority control situations. Cardinal is extremely opportunistic, both with respect to the companies in which we invest and the structure of our investments. Below are some of the typical criteria that guide our investment decisions:

• Transactions

  Cardinal provides capital for leveraged and management buyouts, recapitalizations, strategic add-on acquisitions, industry consolidations, and internal expansions of companies.

• Industries

  Cardinal has expertise in a diverse group of industries including equipment rental, business outsourcing, specialty finance, printing and publishing, marketing services, infrastructure service providers, entertainment, general industrial manufacturing, food processing and distribution, logistics, wireless communication, and real estate services.

• Business Characteristics

  Cardinal invests in businesses with strong management teams who have deep industry expertise and have demonstrated over multiple years an ability to grow their businesses generating strong, consistent cash flow. Our preferred investment opportunity is a company with revenues of $10 to $50 million, annual free cash flow of at least $2 million, is highly scalable, and has the potential to meaningfully grow revenues and margins. Though Cardinal is headquartered in Chicago and has a preference for opportunities in the Midwest, our investment focus is nationwide.

• Management

  One of the most important factors of an investment’s success is the ability of the management team to execute its business plan. Cardinal seeks tangible and intangible aspects of the management profile including extensive experience running a company, industry experience, alignment of interests with that of investors, and strong and trustworthy leaders.