Investing

FON Capital utilizes the profound experience throughout the FON Advisors platform of services to execute opportunistic investments in small to mid-market companies.

We operate on one principle: We generate returns by investing in growing companies, rather than employing financial engineering tactics. We also are in the business of forging lasting partnerships, without the inherent conflicts that traditional private equity firms often face when making decisions. We do what’s best for each of our individual portfolio companies and their management teams. We believe that a company’s full potential will be realized via the application of patient and flexible capital, proven expertise and long-term strategic vision. Our portfolio company hold period is never driven by fundraising concerns and is solely driven by the optimal time to exit each individual portfolio company. Further, we allow our management teams to focus on building long-term value rather than worrying about financial covenants.

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Core Values & Approach

Management as Close Partners

Collaborate with seasoned industry operating executives

Align incentives with management through meaningful equity participation

Entrust management with day-to-day operations; we do not micromanage our portfolio companies

Deep appreciation for company culture and history

A Flexible and Creative Approach

Flexibility with regard to management; we primarily back incumbent teams, but are also open to management transition as mutually desired

Patient and flexible capital

Nimble, decisive, and creative

While focused on equity, we can invest throughout the balance sheet

High Standards of Integrity and Reliability

Honor the terms we present

Closing rate exceeds industry standards

Communicate transparently

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Size Focus

  • EBITDA of $3 – $20 million for platform companies
  • $10 – $100 million of capital invested per deal, with the ability to invest additional equity capital through partnering with like-minded co-investors
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Industry Focus

  • Aerospace & Defense
  • Communications
  • Education
  • Energy
  • Government Services
  • Healthcare
  • National Security
  • Software
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Transaction Focus

  • Change of control
  • Growth equity/shareholder buyouts
  • Minority/non-control
  • Industry consolidations
  • Corporate divestitures
  • Strategic add-ons for platform companies
  • Independent sponsor partnerships
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Geography Focus

  • U.S.
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Time Horizon

  • Long-term and flexible

Contact the Investing Team