In its 25 years of leading investments in private companies, supporting search fund principals, backing independent sponsors, and co-investing with like-minded private equity, growth equity, and venture firms and family offices, The Cambria Group has built one of the broadest investment portfolios in the private equity industry, comprising over 240 distinct platform businesses. We are proud of the quality of the businesses in which we have invested and of the partners – both management teams and co-investors – with whom we have collaborated in these efforts.
While we have since sold our interests in many of the companies in our portfolio, we continue to have active interests in well over 150 of those companies. Through both the current portfolio and those companies, management teams, and investment partners who were involved in companies we have since exited, Cambria is able to garner key insights and perspectives on a wide array of industries and issues that make the firm’s principals even more effective investors and enable them to add unusual value on many dimensions. Likewise, the breadth and depth of the firm’s portfolio means we can draw on relationships and make introductions for the benefit of our partners across many industries and functional areas.
Key themes in our portfolio include:
- Quality businesses. Cambria focuses intently on the quality of a business – its ability to attract and retain a diverse customer base; the quality of its product and service offerings; the substance of its operations and internal processes; the quality and tenure of its management team and employee base; the quality of its systems; and its ability to generate appropriate, yet attractive gross and operating margins.
- Niche players. Often Cambria finds the most attractive businesses are “big fish in small ponds” – that is, companies that dominate some element of an industry or industry niche. Examples in Cambria’s portfolio include the dominant manufacturer of fuel oil pumps for the diesel locomotive industry; the largest manufacturer of wallpaper paste; the largest chain of swim schools in a defined geography; the sole distributor of a large consumer products company’s products in Hawaii; and the nation’s largest cloud-based dental practice management software company.
- Industry consolidations. Cambria has invested in over 30 industry consolidation efforts, in industries ranging from multi-location health care businesses to beverage carbonation systems to industrial refrigeration and golf course management. Consolidation efforts require extra attention, tailored capital structures, and careful execution, but if done effectively can produce very substantial businesses.
- Traditional add-on acquisition programs. Over one-third of 240 Cambria’s portfolio companies have completed at least one add-on acquisition and many have completed more than one, even if not as part of a focused consolidation effort.
- Continued Cambria investment. Cambria has supported many of its companies, whether traditional private equity or venture, with continued financial support in the form of downstream investments.
- Tailored capital structures. Cambria believes there is no one-size-fits-all approach to capital structure and instead works to develop custom approaches tailored to the specific needs and nuances of each business. These range from all-equity solutions to more highly-leveraged situations and often evolve for a single company over time.
- Partnership with Management. In every situation, management is a meaningful partner with Cambria in the ownership of the businesses in which we invest – as typically are the boards of directors we help recruit. We believe this is critical to aligning interests and ensuring that all parties share in both the risks and rewards of our investment program.
We applaud our portfolio companies and salute and thank the executives who lead them.