North State makes junior capital investments in companies in which the management team is a significant and often controlling shareholder group with a need for junior capital to support organic growth, acquisitions, balance sheet recapitalization or partial liquidity events. North State is a flexible junior capital provider, with the ability to invest in both equity and debt securities of a company in order to meet its capital needs while enabling the management team to retain significant equity ownership going forward. Our preference to invest on a non-control basis provides our management partners with the freedom to execute their business plans and realize substantial equity value appreciation.
Partnership with Management
The cornerstone of North State’s investment philosophy is the alignment of incentives with our management partners. We prefer investment structures that allow management to maintain significant ownership and control over the strategic direction of the business. In turn, these dynamics help to ensure a focus on value creation.
North State’s Value-Added Contribution
The Principals of North State bring substantial investment experience in the lower middle market across an array of industries. With a focus on entrepreneur-owned companies, we are effective in creating institutional value in many ways, including developing and executing growth strategies, optimizing capital structures, introducing processes important within a growth environment, building out management teams, and positioning the company for a future shareholder liquidity event.