Investment Profile

Piper Jaffray Merchant Banking

 

PJMB funds provide exposure to high growth companies. The funds seek to provide an attractive return with a lower risk of capital loss and a faster return of capital than other private equity strategies.

Investment Criteria
Industry Focus:
  • Companies within Piper Jaffray's established areas of industry expertise which include: healthcare, technology, business services, financial technology, consumer and energy
Late-Stage Focus:
  • Commercial businesses with significant revenue streams and a referenceable client base
  • Typically at least $10 million of LTM revenue
High Growth Companies:
  • High growth (20%+) companies with high gross margins and operation leverage
Leading Market Player with Barriers to Entry:
  • Companies that have built top tier positions within emerging sub-market verticals, and possess technology, IP or other attributes which create barriers to entry
Strong Management:
  • Talented management teams capable of executing business plans, with aligned equity incentives
Transaction Type:
  • Focus on late-stage growth financings and growth company control transactions
  • $5 - $15 million investment size
Security Structure:
  • Security structures which protect downside risk while maximizing return opportunity
Active Involvement:
  • Companies where PJMB has an active role at the board level to guide value creation
Near-Term Liquidity:
  • Companies which should reach a logical point of liquidity within a three to five year time frame
Aligned Owners:
  • Investments with other institutional investors that have aligned objectives with PJMB