Follis Avenue Search Fund
Founded in 2021, Follis Avenue Search Fund is a value-oriented investment holding vehicle.
We are dedicated to long-term value creation across our portfolio companies. We aim to deploy medium-to-long duration capital across the capital structure, with a focus on controlling equity stakes - but we have made hybrid equity investments.
Our experience is rooted in structure and executing complex public and private markets transactions, but we have always gravitated towards entrepreneur-led businesses. Given our expertise, we can quickly understand unique situations and become comfortable with challenged opportunities.
We don’t financial engineer. We don’t play games. We are genuinely interested in the success of valuable businesses and its employees.
Investment Criteria
Industries
Business services
Consumer services
Home services
Light-manufacturing
Special situations (turnarounds)
Qualitative Metrics
Low capex requirement
Limited customer concentration
Opportunity for organic sales and marketing growth
Inefficient capital structure
Quantitative Metrics
<$2 million of EBITDA
~70% LTV
Visibility to stable margins
Our Process
Day 1: Introduction Call
We are eager to hear your story, especially as it relates to your journey with building your business.
Day 2: Information Share
Let us get under the hood and analyze your business drivers, focusing on long-term value creation and strategies for a value-oriented investment.
Day 3: Letter of Intent
Based on our preliminary analysis, we will provide a non-binding letter of intent to formalize the key terms of the transaction, focusing on long-term value creation.
Day 4: Due Diligence
Understanding the complexity of your business usually takes us 30-60 days. We move quickly, but we care about sustaining what you built.
Day 60: Sign & Close The Transaction
Once we sign the deal, we dive into our work, focusing on how we can drive long-term value creation and scale your business to the next level.