Our Criteria
LFE Capital provides junior capital in the form of preferred equity and subordinated debt to revenue generating companies that are seeking expansion capital to grow their businesses or buyout capital to restructure the ownership of their businesses.
Sector Preferences
Business Services
Services that automate or outsource business processes, generate productivity, save costs or improve customer service for other businesses.
Health
Health related products and services, including medical devices (later stage only) to wellness and nutrition concepts.
Consumer
Branded products or services that are targeted to the consumer market.
Female Focus
LFE Capital has a special focus on businesses that are owned or led by women and businesses that target female consumers.
Geographic Focus
Upper Midwest.
Company Profile
Established business with revenue of $5-75 million and at least $1 million of annual cash flow.
Emerging Business with at least $5 million of revenue and within 12 months of break-even cash flow.
Business Plan Components
Target market well-defined, with compelling purchasing proposition and competitive advantage.
Attractive economic model, with high margins, multiple sources of growth, scalable structure, and large market.
Competent core management, with deep knowledge of business area, leadership skills, and flexibility to adapt to business requirements.
Investments up to $10 millon. Will co-invest in larger transactions with lead investors that have similar investment styles.
Investment Type
Preferred stock or subordinated debt with equity features.
Control and minority positions.