Hunt Special Situations Group maintains the following investment criteria:

Industries

Hunt Special Situations Group takes a generalist approach to investing and will consider investment opportunities in a variety of industries. The group generally does not seek nor participate in pure-play investments or acquisitions in the oil and gas or real estate industries. Hunt Consolidated, Inc., is a global leader in these fields, maintaining extensive assets and actively seeking additional opportunities.

Business characteristics

Hunt Special Situations Group seeks investment opportunities that exhibit many of the following characteristics:

• Companies with revenues of $25 to $200 million.
• Viable core business model, despite current structural, transitional, financial and/or operational challenges.
• Companies with discrete operating problems that can be identified, isolated and fixed. These may include right-sizing, rescaling or reorienting operations, meaningful but not overly complex capital projects and opportunities to reduce costs through improved strategies, processes and controls.
• Companies with discrete financial problems as a result of capital structure which may be inappropriate given the current performance of the business.
• Attractive and defensible market position with respect to size, margin characteristics and growth potential.

 
Transaction Size

Hunt Special Situations Group seeks to make equity investments between $5 million and $20 million.  Hunt Special Situations Group will also co-invest with other like-minded equity sponsors in larger transactions.

Transaction Structure

Hunt Special Situations Group is flexible in terms of acquisition structure, including purchasing assets through out-of-court restructurings, bankruptcies, divisional carve-outs, going-private transactions and recapitalizations.

Geography

Hunt Special Situations Group primarily seeks investment opportunities headquartered within the United States.

Involvement

Hunt Special Situations Group seeks to add value to its portfolio companies by actively contributing to the strategic and corporate decision making process. In addition to the investment professionals within Hunt Special Situations Group, the group’s network of operating partners is a value-added, active component of the investment strategy.  Our operating partners have significant operating and turnaround experience in both large and middle-market companies and domestic as well as multi-national companies across a variety of industries.

This involvement may range from holding seats on the company’s board of directors to playing a more active role in the development of the company’s management team and the implementation of its business strategies.

Bill Cralley, president and CEO of Edge Flooring LLC, a Hunt Special Situations Group portfolio company, made the following comment about Hunt’s constructive involvement: “We are extremely pleased to announce our new partnership and investment by the Hunt Special Situations Group...  The financial investment as well as the commitment of non-financial resources will allow our company to achieve its full potential…”

Hunt Special Situations Group actively seeks investment opportunities in companies that have strong underlying businesses but may suffer from inappropriate capital structures or discrete operational problems. Such transactions may benefit from a financial and/or operational turnaround or restructuring of the company. Ultimately, Hunt Special Situations Group seeks to design and deploy strategies to align the interests of owners, managers, employees, creditors and customers, design and implement achievable business restructurings and turnarounds and position companies for long-term profitability.

The professionals at Hunt Special Situations have participated in the following types of investment transactions:

• Purchasing assets out of a bankruptcy process;
• Out-of-court restructurings;
• Going-private transactions; and,
• Recapitalizations.

As a privately owned and funded investment vehicle, Hunt Special Situations Group maintains a flexible investment strategy seeking special situation investment opportunities across multiple sectors. We believe value is most appropriately sought through unique opportunities, developed by pro-active investigation, leveraging the resources and network of the broader Hunt Consolidated, Inc., organization.  The Hunt culture is fundamentally based on honesty, integrity and reliability.