A Diversified Holding Company with a Long-Term Investment Horizon
INVESTMENT APPROACH
Covey Equity seeks to invest in niche businesses at the lower end of the middle market. The following characteristics are strongly preferred for Covey to pursue a platform investment:
Stable history of positive free cash flow
Leading provider of products or services to a well-defined market
Established management team
Definable competitive advantage
Cultural alignment with Covey
DISCIPLINED
Private capital partner focused on investing in niche businesses at the lower end of the middle market.
LONG-TERM
Permanent holding company structure gives Covey the ability to hold investments indefinitely and allows each portfolio company to thrive without the unnecessary pressure of a defined exit timeline.
INTEGRITY
We operate with honesty and transparency in how we treat employees, customers, vendors, and partners.
STABLE
Our investments are carefully chosen to stand the test of time while managed by leaders that share our beliefs and core values.
INVESTMENT CRITERIA
Investment Criteria for Platform Investment
SIZE
Up to $50 million Enterprise Value
CHARACTERISTICS
$3 – $8 million in EBITDA / Greater than 10% EBITDA Margins
BUSINESS TYPE
Manufacturing / Distribution / Business-to-Business Services
GEOGRAPHY
Southeast Preferred / Midwest Considered
TRANSACTION
Majority Buyout (Equity Rollover Preferred)
Investment Criteria for Add-On Investment
Strategic fit with existing portfolio company
Greater than $500k in EBITDA
ABOUT US
Our disciplined strategy empowers our partners and their management teams.
Founded in 2003, Covey Equity (previously JBA Capital) is a privately-owned holding company focused on making long-term investments in lower-middle market niche industrial businesses. Our patient approach to investing centers around a disciplined strategy of acquiring operating businesses in partnership with established management teams who share our values. For nearly twenty years, we’ve consistently delivered attractive risk adjusted returns by focusing on customers, developing leaders and efficiently allocating capital.
OUR PORTFOLIO
PHX Holdings
September 2003
PHX Holdings, LLC actively manages a family of contract manufacturing and manufacturing services businesses, including Phoenix Stamping Group and GTC Machining.
Provider of moderate-to high mix, high complexity printed circuit board (PCB) assemblies and top-level products for the industrial controls, energy, lighting, and medical markets.
Blow Molded Solutions, is a custom blow molding operation, manufacturing parts for major Tier I OEMs, and other medium-size manufacturers in recreational, automotive, and other consumer product markets.
Provider of structural panels made of high-density, polyurethane foam reinforced with layers of fiberglass primarily for the marine and recreational vehicle markets.
