Coastline Capital is a private equity investment firm that invests in middle market companies that are leaders in their market niches or can serve as platforms for consolidation and rapid growth in fragmented industries. While we believe that flexibility is critical to success in the middle market, our activities generally fall into three categories, (1) ownership transitions for entrepreneurs, families management teams, and corporations seeking liquidity from non-core assets; (2) growth capital investments that serve as catalysts for rapid growth or strategic transformation; and (3) special situations involving companies experiencing financial or operational stress.
Coastline believes that management is a key component of success and, while we would prefer to support an existing management team, will back a proven executive to acquire a company in his or her industry or identify experienced executives to augment a management team when a strong, incumbent team does not exist. We strongly believe that management teams should share generously in the value they help create and, therefore, provide management with considerable economic incentives ranging from performance bonuses to equity participation.
Coastline pursues a collaborative relationship with management and seeks to develop an active, engaged partnership without becoming involved in day to day operations. In this regard, through our involvement on the Board of Directors, we work closely with management to identify value drivers, prioritize key opportunities and issues facing the company, and establish strategic goals. While we rely on management to run the business, our operating experience enables us to serve as an engaged, value added partner with full appreciation for the unique circumstances and challenges facing small and medium size companies.
Coastline is opportunistic and pursues a flexible approach to investing capital and realizing returns on its investments. Underlying this approach is a focus on enhancing the intrinsic value of a business rather than financial engineering. Therefore, we craft sensible financial structures built around conservative business plans and ensure that sufficient liquidity exists for working capital, expansion, and fluctuations in performance due to company or systemic factors.