Most of the investments are expected to be made in fundamentally sound steel companies which are not achieving their full potential. However, the Steel Capital also pursues companies considered less desirable by other firms, either because of the company's position in an "out-of-favor" industry segment, the company's need for operational improvement, or the complexity of the transaction. In addition, we seek companies that are leaders or which, through successful implementation of a business plan, can become leaders in their respective fields.

Investment Approach
We do our homework. We examine the deal from every angle, inside and out. Our in-house knowledge base consists of 12 investment professionals who have extensive experience in private equity. We also bring in specialists to help us determine the opportunities for each business we look at.

Active Involvement with company
In most of its investments, Steel Capital is the lead equity investor and has a controlling interest in the portfolio company. The firm will consider minority investments where it can obtain adequate shareholder rights. In all cases, its role will be that of an owner and active member of the board of directors.

Strategic and Operating Orientation
Steel Capital believes that the most effective means to generate attractive investment returns is to create value at the operating level through sustained growth of operating earnings. Thus, Steel Capital pursues situations in which its principals and management see the opportunity to achieve both short- and long-term improvements in the business through a combination of growth strategies, cost management programs, technology initiatives, and strategic acquisitions.

Steel Industry Preferences
The investment approach of the Steel Capital Group of Companies is to create significant opportunities for capital appreciation by focusing exclusively on an area in which we have a special expertise: the acquisition and improvement of steel and steelmaking raw material businesses. We are ultimately seeking companies that can be leaders in their respective markets.

Strong Management
Steel Capital believes that the most critical determinant of a portfolio company's on-going success -- and therefore of the success of Steel Capital's investment in that company -- is the company's management. Strong management teams are typically already in place or are recruited specifically for each transaction.

Geographical Diversification

Investment Criteria

Steel Capital Group views the closing of a transaction as the beginning of our real work. It recognizes that implementation of the detailed business plan takes a high level of commitment by management and close coordination with ownership. It fully supports management of each of our portfolio companies in this process.

Investment Proposals
Steel Capital welcomes investment proposals or inquiries from principals or their advisors or from intermediaries or others aware of situations they believe would interest the firm.