Pendergast Partners, LLC (PPL) has built a distinct reputation as a private equity firm on the basis of its strength in Supply Chain and Distribution.
PPL's five partners have in-depth supply chain, operations and financial skills and are supported by a strong network of senior operating and supply chain principals and advisors who are both successful executives and recognized thought leaders. With this organization, PPL is able to assist our acquisitions extend their market reach, control working capital and manage outsourced supply more effectively.
We acquire controlling interests in companies and participate actively in management and operations, particularly where manufacturing and financial process controls and supply chain/ distribution skills are required. Our partners have averaged 30% internal rate of return on past private equity investments totaling $230 million.
We are looking for companies with revenues of between $5 and $100 million that have been in business for at least five years, are profitable and have a strong product line with good margins and a good brand or technology position. Typically, these companies do not have the supply chain and distribution resources that would enable them to move to the next level. Pendergast Partners can make this happen.
PPL is currently focused on building a portfolio of investments in recreational motor sports, particularly Performance Automotive. Included are companies that build high performance engines, ignitions, brakes, suspensions and other components for race cars, street rods, off-road vehicles, boats, motorcycles and snow mobiles.
PPL likes this market because of its 30 year record of growth, unaffected by the economic cycle, high margins (40%-70%), preponderance of small companies with many enthusiast owners looking to retire, and significant unexploited supply chain opportunities. Also, PPL has had success in this sector with one of our partners, Dan Gresham, formerly CEO of Dynojet Research, Inc. and formerly CEO of MSD Performance Group.
Click here to find out about Pendergast Partners' Management Team.
