The newest private equity firm in Grand Rapids is looking to shake up the market. Looking to raise $50,000,000.00, Auxo Investment Partners is hoping to invest in 10 to 15 companies over the next 5 years. This may sound like a traditional PE firm model (raise money and then invest it) but Auxo looks to differentiate itself from the others.
Jeff Helminski and Jack Kolodny (both formally with Blackford Capital) along with Fred Tedori, will be the managing partners of Auxo. They look to add transparency between the firm and their investors as well as provide a different option for businesses trying to choose between a family office and a traditional PE firm.
Auxo looks to provide the businesses it invests in with the professional expertise to grow and expand their businesses, like a private equity firm can provide but provide longer term investment periods like you would see with a family office. Auxo sees its investments lasting a minimal of 5 years but they are not afraid to expand that time frame to 10 years or more.
What does this mean for your West Michigan business? To begin with, the obvious benefit is the launch of Auxo Investment Partners means there is another option when seeking investors. If you are in the manufacturing, industrial, “value-added distribution,” or business services industries and have an EBITDA between $1.5 million and $15 million, you may be a prime candidate for Auxo. Although you might have to get in line, because Auxo has already been getting the attention of potential opportunities.
The bigger picture of the launch for Auxo is they are breaking new ground. While only time will tell on how much success Auxo will experience with its new model, Auxo may be the first in a number of new firms that break away from the traditional options that have been available to businesses.
Options are always a good thing for you as a business owner. Your goals for your business and yourself personally, may not be the same as your neighbor or your neighbor’s neighbor. If the options available are limited, your goals might not all be met. But as more options become available because of people making moves like Auxo, the more chance you have to find the perfect fit.
For more information on seeking private equity investing and other growth options for you Grand Rapids business, contact The Business Law Group today.