This is the parent listing for a roll up strategy – interested investors can request allocations on this page to be prioritized for deals completed within this roll up strategy.

Overview:

SFV has engaged with an experienced sponsor looking to execute a roll-up strategy in the precision manufacturing sector. Capital will be raised on a deal by deal basis, and investors will have the opportunity to indicate interest in individual deals as they come to market. Led by an accomplished sponsor-operator with deep experience across Boeing, McKinsey, and private equity, this platform will acquire and integrate niche machining and manufacturing businesses in the U.S. Our goal is to drive operational efficiencies, accelerate organic sales by farming the existing customer base, and enhance enterprise value via a well-planned and well-executed “buy-and-build” strategy.

The sponsor is already in the process of securing LOIs for several companies, and we anticipate having multiple simultaneous sub-listings, in addition to project Bravo, in the near term.

This is a “parent listing” where investors can review information about the sponsor and strategy, as well as a target that is currently under LOI. Capital commitments will occur on a deal by deal basis and, as such, we will not finalize allocations until a specific acquisition is closing.

Investment Highlights:

Proven Sponsor: The sponsor brings a track record of successful manufacturing integrations, having served as a value creation lead at McKinsey and led multiple platforms during a private equity tenure, in addition to having gained relevant operations and manufacturing best practices knowledge during time at Boeing.

Industry: Macro trends in primary end-markets enabling path to tailwinds from industry-wide growth; fragmented industry facilitates roll-up execution.

Roll-Up Strategy: By combining niche but complementary businesses, we expect to gain scale-driven benefits, diversify end-market exposure, and leverage operational best practices (automation, software enablement) across the portfolio.

Target Criteria: Focus on 1) long-standing customer relationships, 2) strong recurring revenue or “spec’ed in” components, and 3) stable cash flows with upside potential in both organic and acquisition-driven growth.

Operational Playbook: The sponsor plans to leverage proven playbook to drive execution—inorganic growth through 1-2 acquisitions per year, building a sales team comprised of “hunters” and “farmers”, and optimizing the operations via implementation of technology stack to facilitate efficiencies and automation.

Sub-Listing #1: “Project Bravo”:

Business Profile: 60+ year-old precision machining company with a foothold in mission-critical industries (energy, transportation, defense). Components are often “spec’ed in” to larger manufacturing processes, providing a strong competitive edge and high switching costs for the end customer.

Financials:

2024 Revenue: $10.7M

2024 EBITDA: $2.8M

Purchase Multiple: 3.2x EBITDA

Location: Western U.S.

Customer Base: Industrial giants, government agencies, and Fortune 500 companies. Many relationships span 20+ years, underscoring high retention and strong switching barriers.

Value Proposition: Unlike commodity machining shops, this company specializes in complex parts and customized components, offering service levels that foster long-term partnerships.

Investment Rationale:

Attractive Valuation: 3.2x EBITDA provides a compelling entry point.

Recurring Revenues: High portion of repeat orders from established customers.

Sponsor Expertise: Post-close, the sponsor will become CEO, deploying operational and growth strategies honed in previous roles at Boeing, McKinsey, Palladium Equity, and 5th Century Partners.

Next Steps & Timing:

SFV has reserved a $500k allocation in the Bravo sub-listing.

Interested parties are invited to indicate their interest promptly. (Previously, we targeted a deadline of March 31, but the transaction timeline is now extended; we will update details as the new timeline solidifies).

Key Takeaways:

Parent Listing: A multi-company roll-up in the precision manufacturing sector, led by a sponsor with a substantial record in operations and private equity.

Sub-Listing #1: Project Bravo remains an immediate opportunity with proven cash flow, a loyal customer base, and a particularly attractive acquisition multiple. Slightly delayed timeline – to be updated in due course.

Coming Soon: Additional targets are in advanced stages of LOI, each intended to fit synergistically into the platform’s long-term value creation strategy.

Should you have any questions or want to review the diligence materials for Bravo (or upcoming sub-listings), please reach out at your earliest convenience. We look forward to collaborating with co-investors to capitalize on this exciting opportunity.