Providing patient and flexible capital to extraordinary businesses in the lower middle market

We invest behind best-in-class management teams in order to help owners achieve their goals and to enhance the value of the businesses with which we partner

Our Approach

HSD invests meaningful firm capital, as well as limited partner capital, in select businesses in the lower-middle market. We tap into a vast network of deal flow sources to identify unique investment opportunities that allow us to drive outsized returns by unlocking value through exceptional management. We have a flexible mandate across industries, size of our portfolio companies, and investment size and structure.

With significant firm capital and a broad network of like-minded investors, HSD has the ability to structure investments in a way that best aligns the interests of our capital and the goals of our business owners and management teams. As a firm without institutional restraints, we can be patient investors in order to create the most long term value.

Investment Criteria

Financial Characteristics

$3-15mm EBITDA

$5-20mm Target Equity Check

Up to $50mm Equity Check

Business Charcteristics

History of profitability

Existing Cash Flow

Best-in-class Management Team

Long term sustainable growth

Investment Types and Uses

Control and Non-Control

Management Buyouts

Founder Liquidity

Acquisition Capital

Balance Sheet Recapitilizations

Growth Equity

Preferred Equity

Industries

We have a long history of investing across a wide range of industries, including Industrials, Business Services, and Manufacturing

We avoid industries with significant technology risk

Our patient capital allows us to consider businesses in industries that experience higher than average cyclicality

Situations We Avoid

Start up risk

High turnaround risk

Contact Us

    For more information on HSD Investments, our history and our investment criteria, please contact us:

    David Dunlap

    Managing Partner

    E-mail

    david@hsdinvestments.com

    Phone

    (646) 884-0421

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