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Private Equity


Private Equity


Targeted Alternatives Group invests in closely held, mature, regional businesses where it can assist owners in management succession transitions or growth strategy execution.  We are interested in basic businesses with sales up to $100,000,000 per year with a well-defined, focused product strategy and capable second tier management.  In addition to our capital investments, we provide assistance with ERP/Data System upgrades, development of internal and process controls and procedures, facilities rehab and upgrades, and strategic planning for capital preservation and growth.

Collaboration

We prefer to partner with owners and key management rather than buy companies outright.  A company is a reflection of its owner's values, capabilities, and reputation.  We want to build on those company gems.  Maybe owners have been wanting a state of the art ERP data system, upgraded facilities, or help in training and retaining the best people.  When we work together, wonderful things can happen.

Succession Planning

We work with our management partners to identify those with the potential to assume greater responsibility in the organization, provide critical development experiences to those that can move into key roles, and engage the leadership in supporting the development of high-potential leaders.  The rewards are improved employee commitment and retention, existing employees see career development expectations being met, and we reduce the difficulty and costs of recruiting externally.

Strategic growth

We and our company management partners work intensely to uncover opportunities to expand markets and adopt innovative productivity and cost containment tools, but that is only the beginning.  Our management partners gain top to bottom alignment by listening and engaging the entire staff in key conversations about why and how we want to grow our business.  When growth makes sense, and the team is truly aligned around a strategic plan, the organization is revitalized.

Venture Capital


Venture Capital


Minimally Invasive solutions

We target MedTech ventures that develop products for minimally invasive surgical solutions, primarily in the vascular procedure space.  We currently co-invest with the venture arm of a Fortune 500 medical device company, a sovereign venture capital fund, and other prominent venture capital groups in the MedTech arena.

promoting cost containment

Medical reimbursement systems are increasingly pushing hospitals to reduce patient stays.  Compare an open tissue procedure followed by multiple days spent in the hospital with a brief catheter procedure followed by an overnight stay in a recovery center.  The trend is clearly going in favor of minimally invasive solutions.

quick return to normal   

Patients are increasingly seeking out minimally invasive procedures because of their multiple benefits:

  • Less pain
  • Shorter hospital stay
  • Less scarring
  • Less Injury to tissue

A shorter recovery period results in a quicker return to a productive life - something good for both the patient and their employer.

 

Real Estate


Real Estate


Targeted Alternatives seeks commercial real estate investment opportunities in the southwestern United States.  We target capital preservation oriented investments or joint ventures with either long-term credit tenants or value-added development/redevelopment opportunities primarily in the $2,000,000 to $15,000,000 range.

Location

Location and site are primary considerations in our real estate investments.  For office properties, we seek "B" class buildings in "A" locations.  Retail property selection is driven by area demographics, and neighboring and competing uses.  Industrial properties vary widely in uses and therefore must have an optimal balance of a healthy industrial service area as well as excellent transportation infrastructure and facilities.

Expense technology

Our management style is rooted in the boom-bust cycles of the southwest.  Rental rates are largely a product of the marketplace, but competitive advantage in tough markets comes from superior expense management.  Lighting retrofits, energy management systems, xeriscaping and other technological solutions deliver true value to tenants by minimizing per person occupancy costs.  We target technologies that have an 18-month payback period and reduce overall stress on the property and its systems.

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Disciplined Approach

We employ a disciplined approach to real estate investing.  In the most recent downturn, this discipline led us to sell all but one of our investment properties by the end of 2005.  It also kept us from making new acquisitions at the height of the market frenzy.  Our standards:

  • Properly well-located considering use.
  • Bought below replacement cost.
  • No irreversible functional obsolescence.
  • Immediate cash flow or highly likely long-term appreciation.
  • Value add opportunities through rehab, redesign, repositioning, or employing state of the art expense technology.