DCG makes minority investments into profitable, lower middle-market businesses and provides operational support to help grow the business within the government channel. Investments range from $2 Million to $10 Million and typical investment structures include non-control equity (structured or preferred), mezzanine debt, second lien debt, subordinated debt, and unitranche debt.
Our investment structure is less dilutive than typical venture capital and is an ideal solution for companies (i) in mature industries, (ii) with traditional growth curves, (iiI) no current plan to sell the business, or (iv) where founders or owners are interested in retaining substantial equity and control.
We invest in both sponsored and non-sponsored transactions. Our investment can be used to facilitate growth, buyout a minority investor (including foreign investors), consummate a strategic acquisition, provide existing owners with near-term liquidity, or to bring on an operational partner (DCG) with expertise in the government channel.
National security is not limited to the battlefield. We are interested in any product or service that strengthens the security of our nation.
Companies should have already achieved annual revenue of $10 Million on an LTM basis.
Companies should be profitable, demonstrating a sound business model and ability to service debt investment.
Companies must be headquartered and incorporated in the United States, with majority ownership held by U.S. citizens.
While we invest in a range of technology, we are equally interested in hardware, manufacturing, and services.
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