Alerion is focused on investments that leverage our backgrounds, skills and network to add value. 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.
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.
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 technology focused opportunities within the broader technology and defense sectors. Generally, products and services fall into the following classifications:
Alerion seeks the following characteristics in opportunities we consider:
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:
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.
We coalesce our backgrounds, skills and experiences to provide the greatest returns for opportunities within our target markets. As such, we focus on investments in market sectors of relevant experience, where we can be of the greatest value in working with management to grow the businesses.
Our operational expertise and networks align with the technology and defense sectors, vital components of a growth economy. These sectors are both diverse and vibrant, with a continuously changing landscape as new and compelling patterns emerge.
Our team seeks out those opportunities we feel are best positioned to leverage our skills in driving improved business performance, market position and margins. Our team brings the breadth and depth to span multiple market segments where we can provide this same leverage. Below are specific examples of the industry areas, along with some representative areas of opportunity where we concentrate our attention and capabilities.
Test & Measurement