Investment Criteria

Stanmore has four main criteria for investment:

1.  The company should have revenue and have operational profits (EBITDA). Because most companies that Stanmore works with can benefit from a capital infusion, the balance sheet of the business is not as important as the operational profits.

2.  The company must be in a position, with capital, to dramatically increase sales and profits, especially through acquisition.

3.  Stanmore Fund, LP can only invest as an investor in a larger round. For example, Stanmore may invest $2m in a total of a $10m round. Stanmore has close relationships with dozens of specialized investment funds that often co-invest into a company once the acquisition plan or strategic plan is finalized. Therefore, Stanmore will organize and close the other investors for the round.

4.  Stanmore Fund, LP can only invest in companies that are either trading or will soon be trading on public exchanges.  Stanmore Capital specializes in taking these companies through the listing process on alternative exchanges.

After the initial investment, the full-service banking capabilities ranging from taking companies public on a junior, often foreign, exchange, mergers and acquisition representation, and access and negotiation of debt capital usually increases the value of the investment immediately.

The key driver in considering an investment is the viability of the company in a public capital markets. This viability depends upon, for example, the quality of management, board of directors and the company’s competitive advantage in the market.