General Investment Rationale
We seek investment 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 individual investment, our general goals in each case are similar.
General Investment Strategy
Investments sponsored by SISPE Capital Management are typically made in middle market businesses that generate between $500,000 and $ 5 million in EBITDA, although we do entertain opportunities that are somewhat below or above that range, and through our working relationship with The DVS Group, we can refer opportunities that don’t fit our investors’ criteria to alternative capital sources. Each of our funds or stand-alone investments focuses on a specific community (affinity group) and gives first consideration to investments within that affinity group, and to entrepreneurs who will contribute a portion of their net profits to a philanthropic cause related to the community.
Investments typically take the form of a significant minority equity interest in a company, with certain protections for that interest, or mezzanine debt with an equity component; however, we do consider control investments and even straight debt where appropriate.
We can facilitate investments in almost any industry, so long as the business is not engaged in activities that contradict the community values established by SISPE’s investors.
Fund Specific Criteria
Rerum Novarum Fund I welcomes inquiries from owners of middle-market businesses seeking equity and mezzanine debt capital for expansion or business transitions. Preferred investment candidates are Catholic-owned businesses that generate between $500,000 and $ 5 million in EBITDA and have a history of supporting Catholic philanthropic projects. Typical investment levels are $500,000 to $3 million. Our fund makes long-term investments (10 years or more) with an expectation of reasonable current cash returns, allowing our portfolio companies to run sustainable businesses that benefit their employees and their community on a long-term, intergenerational basis.
The fund can invest in almost industry, so long at the business is not engaged in activities that contradict the community values of the fund. Specifically, Rerum Novarum Fund has strict policy against investing in any business which materially participates in abortion, contraception, euthanasia, embryonic stem cell research, pornography or the exploitation of women and children, non-bank consumer lending, or the production of weapons of indiscriminate or mass destruction.