RC/ Fontis partners with companies that substantially fit certain
attributes and market criteria.
Primary focus on expansion and late stage companies
Utilizing RC/ Fontis’ network of industry, financial and professional
relationships, we provide portfolio companies a competitive advantage as they
grow. We are looking for established businesses that can grow to the next level
with additional resources. We look at the full spectrum of transactions including:
acquisitions, expansion financings, recapitalizations, management buyouts,
and industry consolidations.
Favored industry sectors– media, consumer goods, and
service companies serving ethnic markets
RC/ Fontis’ investment targets are concentrated in three target sectors:
Media, Consumer Goods, and Service Companies. Media includes print, broadcast,
online, and other publishing. Consumer goods includes all consumer products,
andwe have a particular interest in ethnic food companies. In the services
sector, we target financial and information services, in addition to business
services. In general,
we emphasize companies that are serving emerging ethnic markets. In all cases,
we seek opportunities where we can actively leverage our operating experience
and networks to build long-term value.
Geographic location capitalizes on our prominence in Southern California
and the Southwest
Our emphasis will be on companies in California (with a particular emphasis
on Southern California) and the Western United States including (but not exclusively)
Washington, Nevada, Colorado, Arizona, New Mexico, and Texas. Since we are
active investors, we intend to visit our portfolio companies often, so we are
particularly focused on companies within the region. Our investment professionals
are readily accessible to our portfolio company partners.
Large, Addressable Market
RC/ Fontis is looking for companies that have the potential to substantially
grow their business and that serve a market large enough to facilitate the
creation of a substantial business over time. The Company’s product
or service must address a recognized need in the market place.
Superior Team
A successful company is built by a strong and cohesive team with the leadership
skills to inspire greatness, the vision to define the operating strategy,
and the ability to recognize the business's strengths and weaknesses. We
are targeting managers who seek to acquire best practices from market leaders
and surround themselves with team excellence. We also recognize
that not every company has all the pieces in place to execute a significant
growth plan, and we are prepared to help management identify candidates to
fill those gaps.
Differentiated and Sustainable Competitive Advantage
The establishment of a differentiated business proposition is essential. When
making investment decisions, we place emphasis on the ability of a business
to strengthen its position as a market leader or rapidly become one. The
management team should have a firm understanding of the company's unique
capabilities, and the barriers to entry that will prevent others from encroaching
on the market. The business model should reflect a thorough understanding
of the changing competitive environment in which it operates and an innovative
way of leveraging its sources of differentiation.