NewtrAx
It is not uncommon, particularly among smaller, rapidly growing businesses, that a company has real need of the kind of support, structure and experience we can provide, but its owners are not yet (and perhaps never will be) prepared to give up ownership control of the enterprise they have founded. In the right context we are quite willing to be minority partners with committed owners who share our values and our enthusiasm for building a great business over time.
We pursue opportunities such as these under an initiative heading we call NewtrAx.
Equity investment is our primary focus, aligning our interests wholly with those of the management team building the business. However, structures such as convertible subordinated debt may also be appropriate in some cases.
A company considered for NewtrAx investment must be beyond the venture or start-up stage. It must have commercially proven products or services and an existing and growing customer base. The company has brought to the marketplace creative thinking and new ideas with respect to defining its market and serving its customers. The company must be seeking capital to execute against a specifically defined, promising plan for growth. Without exception, the management team must be wholly committed to remaining with the company. We will not provide capital to enable founders or management to reduce their investment in the business.
The industries and sectors of interest to us are, broadly speaking, the same as those on which Axel Johnson Inc.’s core portfolio efforts are focused. However, just as in our core portfolio, it will ultimately be the character of, and prospects for, the specific company that will above all else determine our level of interest.