SISPE Capital Management organizes and manages a unique set of alternative investments that serve “middle market” businesses that are the engines of their communities. We believe that if more businesses are owned within a community and support a community, the community is stronger.
We believe that if more businesses are owned within a community and support a community, the community is stronger. Our goal is to provide investment capital that works differently than traditional private equity. We recognize that when business transitions and expansions are sponsored by typical private equity funds, that tie to community can be broken. The need to generate the highest possible capital gains for out-of-town investors within a five-year window often becomes the only goal. Providing good jobs for members of the community, providing support for the community’s institutions, and providing long term stability cease to be a priority for the company. But our unique investment structures and criteria keep those considerations alive.
We organize and manage a different set of alternative investments that allows business owners and investors to maintain a balance between capital and community. We call it Social Impact Sustainable Private Equity (SISPE). We facilitate longer-term investment capital with no expectation of “flipping” companies for gain. We source our capital primarily from members of a given community, and then make investments primarily with businesses owned by members of the same community. Although the particular community might be different with each fund or stand-alone investment, our goals for each investment is similar:
For Investors: Our investments are structured to provide a regular current income stream. This is different than the typical private equity model which provides very little or no cash return to investors until the portfolio is liquidated in 7-10 years.
For a Retiring Business Owner: Our capital provides the means to monetize a lifetime’s work while leaving a business in a strong position for long-term viability, improving the odds that employees and the community at large will benefit from the company’s continued operations. This is different from the typical private equity model which changes a company’s culture, over-emphasizes short-term efficiencies, and loosens its ties to the community following an acquisition.
For a New or Continuing Business Owner: Our capital comes from patient investors whose goals align with the long-term goals of a business, its employees, and the community. This is different from the private equity model which focuses solely on re-selling the business within a five-to-seven-year window, with little regard to the long-term health and intergenerational value of the business.
For the Community: Our investments help to maintain community ties within companies that have historically provided jobs and philanthropic support to the community. This is different from the standard private equity model which seeks solely to generate wealth for investors, making community support largely irrelevant.