OVERVIEW
Founded in 2011, Farol Asset Management, LP is an independent, partner-owned private equity firm focused on control and non-control investments in the lower and middle market. The firm is led by a strong team of investment professionals with over 70 years of combined investment experience. At Farol and prior firms, we have deployed over $1.4 billion in equity capital.
Our key point of differentiation is our expertise in partnering with experienced operators, emerging managers and independent sponsors that are proven investors. We serve as a value-added strategic partner at all stages of the investment process encompassing sourcing, diligence and monitoring. Our investment partners value our responsiveness and commitment to rigorous, disciplined and independent due diligence.
We invest private equity capital on behalf of institutional investors seeking to meet specific investment objectives that cannot be achieved through traditional private equity managers. We provide the expertise, resources and organizational alignment of interest to execute direct private equity investments supported by a proven track record of success. Farol has a demonstrated ability to invest alongside emerging managers and independent sponsors – a large, growing and underserved market segment.
INVESTMENT PHILOSOPHY
Farol seeks to build a diversified portfolio investing across all industry sectors. We typically pursue buyout transactions in the lower and middle market in North America. Transaction types include buyouts, growth equity, carve-outs, take-privates and special situations.
We generally invest in niche companies that operate in stable industries that are market leaders with strong cash flow characteristics. We seek attractive entry points due to market inefficiencies that allow us to acquire strong companies at a meaningful valuation discount. The most critical part of our underwriting process is to identify multiple value creation opportunities including cost savings, acquisitions/divestitures, new product introductions and new market expansion — any combination of which, if executed by management, would allow us to generate strong risk-adjusted returns at exit.
Overall, our target is to invest between $5-30 million in equity capital per transaction in opportunities brought to us by emerging managers, independent sponsors, entrepreneurs and operating executives.