ABOUT
Sky Island (noun) – Originally coined by Natt N. Dodge in 1943 as a “mountain island in a desert sea” and today used to describe an individual mountain, often above the clouds, in the midst of surrounding lowlands.
We work diligently to ensure that each one of our portfolio companies becomes its own sky island.
HISTORY & PRIMARY APPROACH
Sky Island was born out of the desire to work alongside entrepreneurs and family business owners of manufacturing companies to serve as a resource and strategic partner with one goal in mind – growth. Our partner group worked together in a former life and wanted to come back together to replicate their prior successes with a deliberate approach defined by aligned interests and a dedicated team of support at the helm to assist our management team partners in all facets of their companies. Our partner group has worked with more than 50 manufacturing companies, not only as strategic partners, but also as day-to-day operators. Our team has been on both sides of the table and we can relate to our management team partners because we have been there ourselves.
We have developed a robust value creation plan that we call our Strategic Playbook, which is a bespoke blueprint for each portfolio company and defines how we will work collaboratively to achieve our lofty goals. With the proper foundation in place, we focus on strategy, operational enhancements, and growth, both organically as well as through add-on acquisitions.
We understand that long-term value is not created by how a company is capitalized, but rather by investing in the right people and processes to establish the bedrock on which to grow and thrive.
Our talented team has collectively worked together for more than 50 years
STRATEGIC PLAYBOOK
The Sky Island Capital Fact Sheet
CONSTITUENTS
Our success is tied to our primary constituent partners – Business Owners, Intermediaries, and Investors. We have outlined targeted information to each party below that we hope will help better explain the value we bring and how we can work together. With our tenure in this market, we have a number of references available upon request – we hope to hear from you.
Business Owners
- True partners who will roll up our sleeves alongside your management team
- One class of stock and no management fees
- Access to capital for organic or inorganic growth
- Ability to lock in permanent liquidity while maintaining upside through stock and equity-linked compensation as well as day-to-day management of your company
- Strong preference to back incumbent management team whenever possible
- Provide opportunities for management with annual bonus programs and long-term equity-linked compensation
- Deploy proven Strategic Playbook alongside the management team to set direction for value creation plan
- Prudent use of debt
- Significant personal financial commitments to each investment means our interests are aligned
- Shared experience from having been executives of private equity backed companies
- Strong network of talented executives and consultants to bring into the fold when needed
- Business owner and management team references available upon request
- We visit less than 3% of the opportunities we review in a year, so you know we are serious if we have a chance to meet
Intermediaries
- We would like to hear from you if you are in the business of connecting business owners to capital providers and strategic partners
- We have full authority over equity decisions and supportive lending relationships that enhance our ability to perform on proposed transactions
- We are willing to pay finder’s fees and buyside brokerage fees
- We are building a portfolio of middle market manufacturing companies that will need sellside representation
- Our targeted strategy helps us quickly sift through opportunities to gain conviction or get to a quick “no”
- We can work with independent sponsors in some capacities, but must have functional and operational control
- We do what we say and have a plenty of references available upon request
- We have a proven and efficient diligence process and are prepared to move as quickly as permitted with multiple instances of hitting truncated deadlines
- We are actively looking for add-on acquisitions for all our portfolio companies
OPERATORS
- True partners who will roll up our sleeves alongside you
- We believe in the upside-down pyramid, meaning we are here to serve you
- Strong preference to support the incumbent management team and augment if necessary
- We have been operators ourselves and understand the complexities of managing a manufacturing enterprise
- Bring significant experience working with more than 50 manufacturing companies over the last 30 years
- Strong compensation program, which can include annual bonuses, long-term equity-linked compensation, as well as the ability to invest directly in the equity alongside Sky Island
- Collectively develop and deploy proven Strategic Playbook to set direction for value creation plan
- Access to our broad network of current and past portfolio company management teams and board members to share ideas and experiences
- Significant personal financial commitments from the Sky Island team means our interests are aligned
- Business owner and management team references available upon request