The Small Buyout Opportunities Fund was created to build a well diversified portfolio of “best of class” funds investing in the securities of small and lower middle market companies.
Siguler Guff believes the “small” buyout market offers an area of great inefficiency and has a variety of appealing characteristics, including substantial deal flow, less competitive transactions, lower purchase multiples, and significant value creation potential. Top managers in the small buyout market are able to consistently identify and acquire leading small companies at very attractive purchase price multiples, providing strong downside return protection.
Through active oversight and management, the better private equity firms in this space are able to add significant value to their portfolio companies as they build corporate infrastructure, professionalize the business and execute growth strategies.