SB Partners is a private equity fund formed in 1999 which invests $1 to $4 million in equity for the acquisition of businesses with the following characteristics:
* Annual cash flow of at least $1 million
* Defined niche and defensible market position
* Stable revenues and cash flows
* Diverse customer base
SB Partners has invested in eight businesses, three of which we still own.
SB Partners' internal rate of return since inception exceeds 11%. This is substantially ahead of the returns from the Dow Jones Industrials, S&P 500, or Nasdaq for the same period.
Strategy and Governance
Prior to founding SB Partners, I was CEO of a community bank. Having run a business prior to becoming an investor meant that SB Partners always focused on strategy and corporate governance for our portfolio companies.
SB Partners' companies are small, and the owner/managers of those companies often do not have an extensive management team to whom they can turn for advice and counsel. One of our critical roles is to help our owner/managers with strategy and governance, acting as sounding board or stepping in on issues where they do not feel comfortable.
That said, outstanding managers value autonomy above all; if you're an exceptional painter, you don't want your patrons telling you how to hold the paint brush. I work to support our managers while giving them the autonomy that their excellent performance merits.
On occasion, I think I've had a good idea so have added a section to this web site called "Opinions". Please share your thoughts by emailing firstname.lastname@example.org
Thanks for visiting the site and I look forward to doing business together!