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Focus

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.

 

 
Target Investments
California and Western region
$10 to $100 million revenue / cash flow positive
Media, Consumer Goods, Services
Potential for significant equity appreciation
Experienced management team
Proprietary product or unique service
Niche or market leader
Sustainable competitive advantage
RC Fontis’ Participation
Type of Financing
Typically lead investor
$3 - $12 million investment
Company board seat
3-5 year investment horizon

Expansion or later stage
Management buyout
Secondary stock purchase
Consolidations
Corporate spinouts