Criteria

Alerion is focused on investments that leverage our backgrounds, skills and network to add value. We focus specifically on sectors within the broader technology industry that fall in either of the following:

Technology (Hardware, Software and Services)
Technology Enabled Services

Investment considerations are made on a case-by-case basis. The following criteria reflect the experience of our team members and serve as a guide to identify investments that complement our philosophy.

Transaction Types

Recapitalizations
Management-led buyouts
Leveraged buyouts
Divestitures
Growth capital

We typically take a majority position in our investments. However, we consider holding significant minority equity positions and co-investing with similarly focused institutional investors. Our philosophy of investing in both the business and management dictates that management hold a meaningful stake in the business and invests along side Alerion.

Financial Characteristics

Gross Enterprise Value: $5 million to $50 million
Annual revenues: $5 million to $100 million
Minimum potential EBITDA: $1.5 million

Technology Industry Focus

Alerion seeks investments in successful companies that provide a variety of engineered and proprietary products and business services in commercial and industrial markets. We focus on the following technology industry sectors:

Hardware and devices
Electronics
Instrumentation
Semiconductor
Software
Business Technology Services
Technology enabled services (non-technology industry)

Prospect Operating Characteristics

Alerion seeks the following characteristics in opportunities we consider:

Definable market
Significant growth opportunities
Demonstrated and sustainable profitability
Experienced management team
Established business model
Proprietary technology, process and/or services

Geography

Reinforcing Alerion's focus on providing management resources to our portfolio companies beyond simply capital, we seek to invest in companies that are headquartered within a reasonable distance from our offices. In cases where we are seeking to add on to an existing portfolio company, geography is not limited. Our primary geographies are:

Southwest
Mountain West
Pacific

Investment Duration

Common practice in the private equity and venture to hold investments for an average of five years and up to ten years prior to a liquidity event. The length of investment by Alerion varies with the needs and specific situation for a given investment. Acquisitions, company performance and market trends are some of the factors that effect the term of investment. Our equity investment liquidity period generally runs in the range of 4 to 7 years.