While each situation is unique, Palisades generally seeks
- businesses of “middle market” size (typically $50 - 500M revenues)
- historical industry leaders
- solid management (Palisades is comfortable making changes in senior management, but considers a generally sound management team to be a precondition of investment)
- amicable ownership transitions (Palisades does not sponsor hostile changes of control)
- any industry sector (Palisades often introduces veteran industry executives as directors or partners).
Palisades finds that its added value, and therefore its own investment return, is highest in a few characteristic situations:
- attractive businesses hobbled by unrealistic leverage
- historical leaders in industries that have been thrust into rapid change, making the previous business model unsustainable
- in each of these situations, Palisades will acquire the company in a transaction which restructures debt as necessary and provides new capital to revise the business model.