The underlying philosophy of Blackhawk Partners investment approach consists of funding its private equity and real estate investment acquisitions with a combination of equity and debt.
Blackhawk underwrites the equity portion of a transaction, both directly and through its core group family offices. We often give our other clients the opportunity to invest in our equity transactions as well (see Placement and Relationship Management as per below). When debt financing is required to structure an optimum transaction, it is provided by the wide array of leading financial institutions with whom we have deep relationships.
Blackhawk differentiates itself from other private equity firms in that investments are normally offered individually to very affluent family offices on a deal-by-deal basis - a model that reflects our preferences for investment discretion, where many high-net-worth investors are hands-on business owners themselves.
Although far from formulaic, Blackhawk’s private equity transactions share some basic features.
We invest our own equity dollars, and those of our investors, and borrow money for the friendly investment in a company. Once we make an investment, we work with company management over the long term to revitalize the business — making it more productive, more competitive, and more profitable. We do this by streamlining operations, investing in future growth, and growing the top and bottom lines for the benefit of all stakeholders, including employees, customers, suppliers, and the communities in which our businesses operate.
We work closely with the management teams of our portfolio companies and stay deeply involved in the operations of our businesses, providing them with substantial resources over an average investment period of five years. We approach our business and our investments as industrialists — and seek to invest in high quality companies that have strong business franchises, attractive growth prospects, leading market positions, and the ability to generate superior returns.
Underpinning the growth and success of Blackhawk is its unique fund raising ability. This results from the unmatched personal service that we provide to our investor base of private family offices worldwide.
Our investment products are syndicated to our shareholders and clients through our dedicated placement and relationship “black op” team. Members of this team travel regularly, maintaining close personal contact with our highly affluent clients to update them on the progress of their existing investments and to explore their interest in participating in new investment opportunities.
These active personal relationships with more than 300 private family offices globally along with our core backers of 22 family offices worldwide ensure we are continually aware of our investors' preferences and can be guided by their wishes.
Many of our clients have also chosen to be shareholders of Blackhawk and feel pride and involvement in, and ownership of, our success. This long-term relationship with clients worldwide - in many cases now spanning several decades - is one of our unique competitive advantages, and leverages the strong brand name we are developing as we move forward.
Blackhawk’s private equity team selects and arranges private equity investments in the corporate and real estate sectors.
For corporate investments, Blackhawk's corporate team looks for investment opportunities in mid-size companies with capable managers, prominent positions in their industries, a strong track record and potential for growth.
These are the types of businesses where Blackhawk’s approach which involves supporting management teams with a range of in house strategic and operational, as well as financial, resources, can most effectively increase value during our target three to five year holding period.
For real estate investments, Blackhawk’s real estate team sources deals and performs extensive due diligence, and arranges financing and the acquisition of US properties that offer Blackhawk’s clients investment opportunities with the potential for both strong cash flow and attractive capital gains, typically over a three to five year investment period.
Blackhawk initially capitalizes real estate acquisitions and joint ventures with a combination of Blackhawk equity and third party debt. The transactions are typically aggregated into a series of multi-property portfolios for equity placement to our shareholders group of 22 family offices along with a core syndicate we have been co-investing with over the last two decades.
As in corporate private equity, we offer our clients discretion on their investments into real estate portfolios. The properties are aggressively asset managed over the investment term to increase cash flow from operations and to build value until realization and exit.
Typical companies we work with are:
- Companies run by operators with significant skin in the game,
- Companies growing rapidly with expectations to continue for the next three years of at least 25% a year.
- Companies generating $10 million to $250 million in revenue for year seeking funding.
- Companies with minimum free cash flow (EBITDA) of $2 million upon funding and at the outset. No limit on the upside.
- Acquisition Roll-Up strategies
Key attributes we look for when investing in real estate projects and joint ventures:
- A clear identification of the project’s business model, goals, risk profile, scalability, exit strategy and profitability.
- Asset Classes: commercial, retail, office, hotel/hospitality, residential (multifamily / condo), recreational, senior housing/active adult, specialty assets, securities.
- Deal Sizes: equity investment amounts of $10 Million up to $500 Million or more, with total deal (capitalization) sizes of $20 Million and up.
- "Home Run" deal potential and profitability on exit; we require returns on our real estate investments that far exceed the status quo.
- An absolute "killer team"; we work with only the best local sponsors, operators and management teams, with a clear advantage over the competition. They must possess the skills, experience and passion to execute the business plan and meet the priorities of all their stakeholders and most importantly; we have to like them.
Key attributes needed for us to engage:
- We don’t accept business plans as submissions for funding. Rather we ask that entrepreneurs submit the answers to our "Investment screening Template" which will be provided upon request.
- If the answers are compelling we will schedule a meeting with the entrepreneurs, developers in case of real estate projects and their advisors for them to present their opportunity to our whole team.
- If the presentation is compelling and we like the entrepreneurs, we will then ask them for their business plan.
- Blackhawk then works with the management team to validate their business model, perform the due diligence and refine their business plan for 1 – 3 months while we develop and execute the shareholder agreements to fund them.
- Once funded, one member of the Blackhawk Partners Team or a member of our Board of Advisors will sit on the portfolio company or project’s board and supervise the continuous mentoring, coaching, counseling and guiding of the portfolio company’s management team until we exit the investment.