The Cambria Group does not expect to manage the companies in which it invests, but rather works actively at the board level to help build the long-term value of each of those businesses. In this role, Cambria's principals draw heavily on their broad experience in all aspects of the private equity business, on their involvement with companies spanning multiple industry sectors, and on relationships built and experience gained in operating roles.
Key areas in which Cambria focuses include:
Accessing and Providing Capital:
Cambria develops a capital structure suited to the needs of the company and its strategic plan. Because the financing is tailored to each specific situation, Cambria has led transactions ranging from 100% equity financings to those with highly-leveraged structures.
Cambria typically also leads in arranging all sources of funding, providing the equity itself and at times working with partners on larger transactions. The firm arranges debt financing through lending institutions with which its principals have developed relationships over time.
Finally, Cambria frequently provides follow-on capital after its initial investment to support companies facing challenges, to fund investments in product development or sales organizations to drive long-term growth, and/or to pursue strategic acquisitions.
Building and Providing Incentives for the Management Team:
Cambria often assists companies with recruiting needs, whether at the CEO level or in functional management. In addition, the firm works at the board level to structure appropriate incentive compensation programs for senior management.
Setting Strategic Direction:
At the time of an investment, Cambria works with management to develop a strategic plan which will set the direction of the company and provide a context for the operating decisions management will face. Incentive compensation is typically tied to objectives defined in these plans.
Following its investment, Cambria's principals serve as active board members, providing strategic oversight and advice as appropriate — and they are always available to function as a sounding board for management on an array of issues.
Identifying and Consummating Acquisitions:
Cambria will often help a management team identify opportunities to build a company through strategic acquisitions — at times pinpointing specific companies, at times engaging intermediaries to assist in identifying acquisition candidates, and at other times simply helping chart the strategy.
Cambria will work closely with management in all phases of the acquisition process — through sourcing, negotiation, due diligence, financing, and documentation — and will then provide guidance on post-acquisition integration.
Cambria plays an active role in the realization of value — helping to identify both the ideal path to liquidity and the appropriate timing, to engage advisors where needed, to lead negotiations, and to assure a favorable outcome.
In all these roles, Cambria works closely with management. However, the firm's principals clearly recognize that operational decisions and their implementation are the purview of management.