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Investment Criteria
CGP directs investments on behalf of select institutional investors that can provide both equity and debt for the financing needs of a rapidly growing retail/consumer company. Investment size generally ranges from $10 million to $50 million. Key criteria for investment selection include sustainable competitive advantage, proven management, proven economics and significant growth potential.
Sustainable Competitive Advantage
Execution of a concept is the key to success. CGP seeks companies that understand the marketplace and are able to adjust quickly to a changing environment, in order to stay ahead of the competiton.
Proven Management
CGP invests as a partner alongside experienced executives who have managed larger enterprises. While CGP can be helpful in identifying talented executives to join a management team, CGP will not make an investment where all key managers must be replaced.
Proven Economics
Companies must demonstrate the capability to support predictable growth. For specialty retailers, the focus is on four-wall cash contribution from existing units as well as the payback period of the initial four-wall investment. For consumer companies, the focus is on regional test results, product sell-through and re-order rates.
Significant Growth Potential
Companies must demonstrate the capability to grow rapidly through the investment period. For company and investor objectives to be met, the company must demonstrate sustainable growth that will achieve a growth multiple at exit. |