Investment Opportunities
The common thread in Steel Capital investments is the ability to put equity capital to
work to create financial, managerial and operational leverage for steel companies and
executives. The actual investment situation may vary considerably, but our flexible
investment strategy results in many different types of investments:
 Acquisitions
Steel Capital leads acquisitions of freestanding companies.
Corporate Divestitures
Divisional management of steel conglomerates, like those in other industries, often
respond handsomely to the entrepreneurial stimulus of stand-alone ownership.
Steel Capital actively seeks opportunities to purchase discrete businesses from parent corporations, in
some cases with a continuing involvement or ownership stake on the part of the parent.
Turnarounds and Distressed Situations
We invest in underperforming businesses which have intrinsically strong fundamentals but
are hampered by excessive leverage, a lack of capital or inadequate human resources.
Additionally, our flexible investment approach enables us to invest in situations that are
unusually complicated in structure or strategy. Operating turnaround opportunities will
also present themselves in the event of an economic downturn.
Going Private Transactions
Companies that are too small to support liquid secondary equity markets or that believe
that their stack is undervalued are candidates for going private transactions.
Joint Ventures
Steel Capital participates in investments in which an operating company, serving the role of
strategic partner, provided the management for an autonomous venture. As a private
company, Steel Capital can exercise considerable flexibility in meeting corporate goals.
Expansion Financings
Companies seeking to increase their scope significantly through acquisitions, product line
extensions, or similar expansion plans may require significant capital. Equity capital and
strategic guidance by Steel Capital can be the keystone in the success of such ventures.
Recapitalizations
Steel Capital can provide the equity capital to facilitate a recapitalization for the redemption
of a founder, family or financial shareholding, or, in certain instances, to institute a
turnaround.
Privatizations
The firm has been instrumental in converting government-owned organizations into private
businesses.
Follow-on Acquisitions
We provide capital to finance strategic acquisitions for existing portfolio companies.
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. |