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Convex Investing, LLC

A search fund with entrepreneurial energy, operational expertise, and dedicated investment capital.

Investment Focus

Convex is actively searching to acquire a privately held business from an owner seeking full or partial liquidity.  Our acquisition structure is highly flexible, but we require a controlling interest.  The business must be profitable, with predictable cash flows and located in the United States.  The business should satisfy most of the following criteria:

 


Financial Criteria

  • $2.0MM to $7.0MM of EBITDA
  • 15%+ operating margin
  • Low capital expenditures and working capital requirements

Company Criteria

  • Recurring revenue model
  • Scalable business
  • Diverse customer base with high retention rates

Industry Criteria

  • Growing industry
  • High barriers to entry
  • Large and fragmented industry landscape

The Convex Advantage

Prompt Transaction

Convex works in partnership with sellers to structure transactions that best meet the seller’s ambitions, lifestyle and estate planning needs.  Convex will move quickly to close a transaction and resolve issues that arise when considering a change in ownership.

 

Continuity

We are entrepreneurs – not financial buyers, nor a large corporation.  Convex’s operating team brings management and financial experience along with sound, tested leadership skills.  The management team will be actively running the business’s day-to-day operations and have a vested interest in the company’s success.

Commitment

Convex understands that good businesses are the result of hard work and commitment to its employees.  We believe that maintaining strong relationships with existing management teams and employees is critical for long-term success.

The Team

 

Chris Biedrzycki

Managing Partner

 

Chris Biedrzycki is the Founder and Managing Partner of Convex Investing, LLC, where he runs the firm’s sourcing and acquisition operations. Upon acqusition, Chris will join the management team of the acquired business and assume the duties of managing the day-to-day operations of the company.

Chris is an entrepreneur, investor, and business operator with 7 years of professional experience.  Mr. Biedrzycki served as Managing Director for Gen Next, Inc., co-founded SeventhWing, LLC, analyzed and underwrote mezzanine investments with Newstone Capital Partners, and excelled in Eaton Corporation’s General Management Leadership Development Program.  He earned his B.S. in Mechanical Engineering from Northwestern University and his M.B.A. from Harvard Business School.

 

Pacific Lake Partners is a private equity fund focused on small cap buyouts exclusively through the search fund model.  Search fund investing consists of providing search and acquisition capital to promising entrepreneurs whose intent is to acquire a small, established company with revenues of $10 million to $30 million and a history of profits and growth.

Jim Southern is a founding director of Pacific Lake Partners.  His portfolio includes more than 50 search funds.  Previously, Mr. Southern was himself a beneficiary of search fund investors early in his career.  His first search resulted in the acquisition of Uniform Printing, a $43 million printer of specialty insurance documents, where he served as its CEO and chairman for 10 years.  Investor returns from distributions and exit exceeded 30x the acquisition capital.  Mr. Southern holds a M.B.A. from Harvard Business School.

Coley Andrews is a founding partner of Pacific Lake Partners.  Since co-founding Pacific Lake, Mr. Andrews has invested in over 25 search funds.  He is currently a director of Out of Home America and a board visitor at Vector Disease Control, Alphacredit, Yoforia, Yates & Associates, Arizona College and Raptor Technologies.  Mr. Andrews holds a M.B.A. from Stanford University’s Graduate School of Business and a B.A. from Dartmouth College.

Anacapa Partners is a private equity firm focused on investing in lower middle market companies acquired through the search fund business model.  Anacapa takes a proactive role with search fund entrepreneurs in all phases of the investment process, including business screening, due diligence, negotiation of deal structure, operating oversight, and exploration of exit strategies.

Jeff Stevens has 20 years of experience structuring, operating and investing in search fund companies.  He has managed three funded searches during the period from 1990-2005, each one culminating in the acquisition of a lower middle market company.  Mr. Stevens received his Bachelor of Arts and M.B.A. from Stanford University.  He is a member of the Board of Directors of Advanced Network Solutions, Developerprogram.com, KGHP, Recruit Military, and Sage Data Security.

Peterson Partners, based in Salt Lake City, Utah, is one of the Intermountain West’s most successful private equity firms.  Specializing in small to mid-sized companies, Peterson Partners has a track record of successful investments including JetBlue, Vivint, EnergySolutions, 3form, Access CIG and Diamond Rental.  Founded in 1995, Peterson Partners has managed over $500 million in committed capital through eight funds.

Joel Peterson is the Founding Partner of Peterson Partners.  Joel has a long history of successful growth capital investments in a variety of industries.  He currently teaches Entrepreneurial Management at Stanford’s Graduate School of Business, serves as Director of the Stanford GSB Center for Leadership Development and Research, is Chairman of JetBlue Airways, and serves as a Director of Franklin Covey as well as Ladder Capital.  He served formerly as Managing Partner of Trammell Crow Company.  He holds a M.B.A. from Harvard Business School.

Dan Peterson is a Partner and Chief Administrative Officer at Peterson Partners.  Prior to joining the firm, he was a Partner with Peterson Ventures, and prior to that, Managing Director at Z Capital.  He has invested in small, growing companies in a wide range of industries, including high-tech, automotive, training and financial services.  Dan was previously a Partner at Trammell Crow Company, and received a M.B.A. from Harvard Business School.

Brandon Cope is a Partner at Peterson Partners.  Prior to joining Peterson Partners, Brandon was a Partner at Peterson Ventures.  Before Peterson Ventures, he was a Engagement Manager for McKinsey and Company.  Brandon received a M.B.A. from The Kellogg School of Management and M.S. and B.S. degrees in Accounting from Brigham Young University.

Aaron Gabbart is a Vice President at Peterson Ventures.  Prior to joining Peterson Ventures, Aaron was the CEO of BenefitGuard, a venture-backed startup offering a no-nonsense 401(k) to SMBs.  Prior to joining BenefitGuard, Aaron was a financial economist at the U.S. Treasury in Washington DC.  Aaron received a M.B.A. and B.S. from Brigham Young University, and serves on the board of the BYU Men’s Soccer Program.

 

Mr. Augustyn is Founder and CEO of both NIP Group, a top 100 national insurance broker, and Extensis Group, a top 20 Professional Employer Organization (PEO).

Mr. Augustyn has been a successful entrepreneur and accomplished investor for more than 20 years.  His investment activity focuses on backing talented entrepreneurs who are strong leaders and creative thinkers and to help them achieve exceptional results.  He currently serves on the board of several high-growth companies.  His early business success landed him a spot among the Forty Under 40, a program that honors young men and women who have made outstanding contributions to their fields.

Tom is a Managing Partner of TD Investment Company, which has made investments in more than 50 private companies, and is CFO of American Security Products, a leading manufacturer of high-security safes.  From 1984 to 2011, Mr. Cassutt was Co-President of Nelson Nameplate Company, a rapid prototyping and engineering support company based in Los Angeles, California.  Prior to joining Nelson, Mr. Cassutt was the Controller of Bristol Corporation, the parent company of 10 manufacturing companies, from 1978 to 1984.  He currently sits on the board of American Security Products, Columbia Sanitary Products and Yates & Associates Insurance Services, Inc.  Mr. Cassutt received his Bachelor’s degree in Physics from the University of California, Irvine, and his M.B.A. from Stanford University’s Graduate School of Business.
Bret is Chairman of Asurion, a consumer technology protection services company.  Mr. Comolli is responsible for the management and growth of Asurion’s business operations.  Bret’s prior experience includes CEO, COO and GM positions at companies such as Excite@Home, Kendara, Risk Management Solutions and the U.S. Army Corps of Engineers.  He also worked at McKinsey & Company.  Bret graduated from the US Military Academy at West Point with a B.S. in Engineering and earned his M.B.A. from Stanford University’s Graduate School of Business.
Bob is a founding partner of Arrowhawk Capital Partners.  From April 1999 until June 2006, Mr. Dahl served as the head of Global Healthcare for the Carlyle Group.  Prior to Carlyle, Mr. Dahl served as co-head of healthcare investment banking in North America at Credit Suisse First Boston.  Earlier in his career, Mr. Dahl was a CPA for Price Waterhouse.  Mr. Dahl is a graduate of the Harvard Business School and received a B.A. from Middlebury College.
Jim is a Professor at Stanford University’s Graduate School of Business.  In 1995, Jim co-founded Asurion with Kevin Taweel to provide value-added solutions for the wireless communications industry.  Previously responsible for Asurion’s sales and marketing efforts, Jim is an active member of the company’s Board of Directors.  He is also a recipient of Ernst and Young’s prestigious Entrepreneur of the Year award.  Mr. Ellis holds a M.B.A. from Stanford University and a bachelor’s degree with high honors in economics from Dartmouth College.
Dave is a Managing Partner of TD Investment Company.  TD makes private equity investments, primarily in search funds.  Mr. Lazier also serves as President of American Security Products, a leading manufacturer of high-security safes.  He has served as Controller, Vice President of Sales and Co-President of Nelson Nameplate Company, a manufacturer of durable graphics and membrane switches based in Los Angeles, California.  Prior to joining Nelson, Mr. Lazier worked as an engineer with IBM Corporation from 1982 to 1984.  Mr. Lazier received his Bachelor’s Degree in Industrial Engineering from Northwestern University.
Tim is the Managing Partner at Ohana Capital, a private equity firm that invests in search funds and profitable lower middle-market companies.  Prior to founding Ohana Capital, Mr. Ludwig was President of a privately-held, commercial real estate company where he oversaw projects totaling $150 million in value and led teams in asset management, acquisitions, and dispositions.  Mr. Ludwig also served in a junior executive role at a middle-market manufacturing business, worked in business development at a venture-backed start-up, and began his career as a consultant with Arthur Andersen Business Consulting.  He holds a B.A. from The College of Wooster (Phi Beta Kappa, honors) and a M.B.A. from the Ross School at the University of Michigan, where he was a student member of the Wolverine Venture Fund.
Gerald is Vice-Chariman of Asurion, the world’s leading value added services to the wireless industry.  Prior to joining Asurion, Gerald helped a wide variety of clients execute their strategic and financial plans as an investment banker with Goldman Sachs.  Gerald has also worked for Hambrecht and Quist and the private investment arm of Toronto Dominion Capital.  Gerald holds a M.B.A. from the Stanford University GSB, and a Bachelor’s in Commerce with honors from Queen’s University in Canada.
Kevin is a co-founder and Chairman of Asurion.  Since co-founding Asurion in 1994, the company has grown from 40 to 10,000 employees becoming the world’s largest provider of technology protection services.  Previously, Kevin was Chairman and President of the investment firm Mill River Corporation and worked in mergers and acquisitions for Salomon Brothers.  Kevin received a B.S. from McGill University and has a M.B.A. from the Stanford GSB.
A. J. is a private investor, with a long-term orientation, interested in lower middle market businesses.  Mr. Wasserstein was the founder and CEO of ArchivesOne, the third largest records management company in the United States.  He successfully built ArchivesOne into a super-regional records management company employing 400 people before selling to Iron Mountain after 17 years of operation.  A. J. graduated from Colgate University and received his M.B.A. from New York University.  In 2000, the U.S. Small Business Administration named A. J. the Small Business Person of the Year in Connecticut. A. J. was featured in the book Leadership Secrets of the World’s Most Successful CEOs.
Kent Weaver is currently executive Chairman and former CEO of Progressive Home Care, a Northern California-based health care company acquired using the search fund model.  Previously, Mr. Weaver held executive positions in marketing and product management for a VC-backed marketing automation startup, as a regional CFO and business analyst in Pepsico’s Pizza Hut Division, and as a management consultant at Ernst & Young.  He received his M.B.A. from the Fully Employed Program at the University of California, Los Angeles and B.S. in Finance from the University of Southern California.

Mr. Weaver has personally invested in over 40 acquisitions sourced and managed by search fund entrepreneurs.  He is currently a board member at VRI, Discovery Outsourcing, Data Fusion Technologies, Onesource Water, Integra Partners, and Healthwyse.

Andy is the founder and chairman of Hunter, Keith Industries Inc., a private industrial holding company headquartered in Minneapolis, Minnesota, with diversified interests in transportation and manufacturing.  Prior to the formation of that firm, Mr. Hunter spent 15 years in the investment banking industry, first with Dain, Kalman & Quail (now RBC Capital Markets) and then as managing director of Hunter, Keith, Marshall & Co., which specialized in investment-grade project finance.  Mr. Hunter graduated from Northwestern University with a B.A. in history and received his M.B.A. from the Stanford Graduate School of Business.

Industries of Interest

 

Aerospace & Defense

Oil & Gas Services

Consumer Healthcare Services

Health & Wellness

Trade Show Services

Trade Association Management

Contact Us

For more information about Convex Investing, LLC or to discuss a specific opportunity, please contact:

 

Chris Biedrzycki
(310) 993-4297
chris@convexinvesting.com
 
 

We work closely with intermediaries and pay industry standard finder’s fees for your deal referrals.  We welcome your ideas and look forward to working with you.