Investment Strategy

Overview of Our Portfolio and Growth Strategy

We buy and grow founder built aftermarket brands with proprietary designs. Our home turf is sport compact, including Honda, Acura, Toyota, Subaru, Mazda, Nissan, Mitsubishi, Volkswagen, Ford (focus on Fiesta ST, Focus ST/RS), Hyundai (especially Veloster, Elantra N), Kia (Stinger, Forte GT), MINI (Cooper S, JCW). Beyond sport compact, we also support select brands in off-road and related enthusiast categories where there is a strong strategic fit.  We look for real product and loyal communities in shops that have hit the wall on cash or operations. The market remains highly fragmented with numerous micro brands focused on niche use cases, which is exactly where we operate.

Consolidation picked up before COVID, with strong deal flow in 2018 to 2020 as buyers scaled operations and addressed fragmentation. The 2024 SEMA Market Report projects 3 to 4 percent annual growth through the end of the decade. In this environment our playbook is simple and effective: we fund inventory and tooling on day one, clean up supply and planning, move to one ERP, set same day shipping with barcode pick and pack, and enforce MAP. The result is fewer stock outs, faster lead times, and a brand that keeps growing after the owner steps away.

Core Investment Thesis: Acquiring and Scaling Micro Brands

We focus on small, niche brands in sport compact and off road with loyal followings that are capped by cash or operations. Owners usually fall into two groups: those ready to retire who want the name and community to continue, and those who have hit a wall they cannot scale past. We buy, fund inventory, stabilize supply, move to one set of systems, and expand dealer coverage so the brand grows without losing its identity.

Targeting Brands at the Inflection Point

We selectively pursue micro brands that have built strong product appeal and loyal followings but are constrained by scalability issues. Common challenges include:

  • Inventory Shortfalls and Delays: Customers often face long backlogs, with pre-paid orders leading to extended wait times, customer frustration, and lost repeat business.

  • Dealer Reluctance: Distributors hesitate to stock these brands due to inconsistent supply, questioning why they should promote products that are frequently out of stock.

  • Operational Constraints: Without robust infrastructure, reliable suppliers, or sufficient funding, these brands struggle to ramp up production, marketing, or distribution.

  • Owner ready to retire: Clean exit with a clear and time boxed handoff, brand identity stays intact, no long term obligations. 

  • Founder at a ceiling: Growth now requires systems and capital the owner does not want to take on. We provide the path forward while the owner moves on to the next chapter.

The Integration Process: Enhancing Value Through Systems and Capital

After close, we put capital and systems to work in a clear sequence that fixes supply, cleans up operations, and restores trust with customers and dealers.

  • Secure the build: We map the product mix and demand, work with current suppliers, and add qualified suppliers from our network where needed. We build, improve, or audit prints, models, and documentation, review parts and fitment, clear inventory shortages and overdue orders, and fold the brand into our technical support team with verified technical docs.

  • Streamline management systems: We consolidate accounting, HR, and IT into one structure and one ERP. Barcode receiving and pick and pack are added with a same day shipping cutoff so operations are simple and predictable.

  • Optimize supply and procurement: We lock specifications, set reorder points and forecasts, and add a second source for critical parts. Pooled purchasing and tighter logistics remove stock outs, shorten lead times, and keep availability consistent.

  • Strategic capital infusion: We fund inventory buffers, tooling, and the first wave of production runs. Marketing support is timed to reliable supply so growth does not strain cash.

  • Expand dealer and distribution: With supply stable, we activate our dealer and distributor network and strengthen online channels. Partners commit when deliveries are on time, which opens new regions and customer segments.

Unlocking Value: Releasing Pent-Up Demand and Driving Expansion

These micro brands live in underserved niches where enthusiasts want specific parts but cannot get them reliably. We remove that constraint and create a simple cycle: 

  • We clear months long backlogs and ship the queue. Revenue lands quickly, refunds go down, and trust returns.

  • We keep core SKUs in stock with predictable lead times. Dealers commit, shelf space grows, and the brand reaches more buyers.

  • We maintain quality & community.

With clean systems and targeted capital we stabilize operations, make growth repeatable, and lift portfolio performance in a healthy aftermarket. We are principals, not tourists. Decisions are fast and execution is quiet.