Valero Partners provides equity capital through a committed fund, Valero Capital Partners II LP, and through a network of high net worth individuals who may co-invest in Valero deals. Typical equity investments range from $1 million to $5 million. Valero seeks to leverage its equity investments with debt financing were appropriate. We typically invest in majority control buyouts or recapitalizations. However, Valero will also consider minority growth investments if there is strong alignment with majority shareholders regarding strategy, investment and time to liquidity.
If additional capital is required, Valero can syndicate a larger financing through relationships that we have developed with other private equity firms and debt financing resources.
We only invest when we are confident in our ability to partner with management and to grow revenues and profitability. Our investment decisions are driven by the following critical factors:
- Market analysis to determine whether the company can achieve market leadership and significant differentiation in a focused niche that provides near term and long term growth opportunities
- Conservative assessment of total cash needs to achieve the company’s objectives
- Financial and market analysis to identify multiple potential exits that could generate premium returns for investors and management
- Opportunity for Valero to acquire a significant equity position in the company
- Confidence in the management team, their alignment with our goals and their willingness to work with us as active partners.