Clarion creates value by employing the following investment evaluation process:
Focus on Growth
Clarion focuses on investments in companies in which there is demonstrable revenue growth potential driven by compelling economic, demographic, or industry trends or company-specific characteristics. In particular, Clarion seeks opportunities in which there is significant, untapped value in the company’s intangibles, such as its brands, technology, management, or systems.
Deal Structure Creativity
Clarion seeks control of investments by purchasing a broad range of securities and employing a broad range of capital structures, depending on the opportunity. The firm focuses on investing not only in traditional control buyouts and recapitalizations but also in growth equity investments and distressed debt situations.
Opportunity in Inefficient Markets
Clarion will often invest in attractive situations caused by market dislocations. To do so, the firm:
- Focuses on the middle-market, which tends to have less mature companies that can benefit from our experience and attention to systems and controls;
- Seeks opportunities in complex industries and companies, which require the type of careful due diligence and structuring that the principals have conducted in the past;
- Identifies out-of-favor sectors, asset classes, and industries, which have attractive long-term growth characteristics but have been neglected; and
- Draws on the principals’ proprietary deal flow, which is derived from the principals’ network of relationships with corporate executives, middle-market financial intermediaries, and advisors.
Clarion seeks to invest in companies that share similar characteristics with those in which it has invested previously, so that it can leverage its experience and relationships to accelerate growth. This strategy includes seeking investments in industries such as Business Services, Healthcare Services, Specialty Financial Services, Consumer Products, Specialty Retail, and Media and Entertainment.