Investment Criteria

Investment Size

  • RAM generally seeks to invest $3-15 million of equity in deals with transaction value ranges of $10-100 million, but has and will lead or participate in deals requiring as much as $35 million in equity with values up to $200 million.

Investment Characteristics

Platform/Control:

  • Between $10-150 million in sales
  • Competitive valuation multiples
  • Strong platform businesses with opportunity for value-added change at the time of investment, such as:
    • Geographic expansion (organically or through bolt-on acquisitions)
    • Product line extension
    • Management succession
  • Recurring revenue models
  • Management alignment through equity participation
  • Proprietary deals

Mezzanine:

  • Attractive leverage and coverage ratios
  • Strong product or market position
  • Profitable and predictable financial performance
  • Strong track record of operating management
  • Strong financial sponsor (equity holder)

Growth Capital:

  • Significant or rapidly growing market
  • Attractive competitive positioning in the industry
  • Scalable business model
  • Experienced operating management with relevant industry experience

Required Terms

Platform/control:

  • Controlling equity position (51% or more), either alone or with partner(s)
  • Ability to source value-added board members and management

Mezzanine:

  • Blend of current (cash) / future (PIK, warrants) income streams
  • A term of five years or less

Growth capital:

  • At least one seat on the Board of Directors
  • A minimum of one other value added co-investor