Juniper Capital’s Focus on Operations

The new Dallas-based PE firm is looking for investments in manufacturing, infrastructure, and industrial products and services sectors.

After deciding to strike out on their own late last year, founding members Bryan and Lou Grabowsky launched Juniper Capital Management in July. The private equity firm, based in Dallas, will focus on investments in manufacturing, infrastructure, and industrial products and services. The fundless sponsor’s strategy is to partner with management teams to help companies grow in specific sectors.

“One of our guiding principles is to work with management teams to create value,” says Bryan Grabowsky. “We both have a long history of working with companies, and we felt our past experiences would help us achieve our goals. These are the sectors where we have the most experience.”

Prior to co-founding Juniper Capital, Bryan Grabowsky was a vice president at Lone Star Investment Advisors, where he evaluated and executed equity and mezzanine investment opportunities on behalf of the firm. Bryan Grabowsky actively worked with management teams on strategic planning and operational initiatives.

Bryan Grabowksy says the goal of being a successful investor is to know when to be hands-on and when to back off. “The management teams need to lead the identification and execution of the strategy,” he says. “We are an extension of that team, helping them accomplish their goals. It takes organization and the right collaboration to make the relationship work. If there isn’t a solid relationship, then the financial returns will suffer.”

The new firm is currently seeking platform investment opportunities in U.S.-based companies with approximately $10M to $75M in annual revenue, proven and sustainable business models, and management teams that want a strategic partner. Juniper will make investments in the form of equity and debt in amounts typically ranging from $5M to $20M per transaction, with a possibility of smaller or larger investments. Transaction structures will include full and partial recapitalizations, growth financings, generational transitions, and leveraged buyouts.

Co-founder Lou Grabowsky is ready to get to work. Most recently he served as Grant Thornton LLP’s chief operating officer. During his career, he has led and advised management teams and boards of directors on a global basis.

“My experience gives me an appreciation for management teams and governance,” says Lou Grabowsky. “We want to work with companies that can benefit from our support, network, and relationships that we bring to the table. We think having an operator’s perspective will pay huge dividends. If you don’t understand the business, you can’t provide valuable insight.”

Juniper plans to offer hands-on assistance and board involvement to assist its portfolio companies while letting the current management team retain control over day-to-day operations. The firm has already looked at about 20 investment opportunities, is actively meeting with management of one company, and is excited about another company. Juniper intends to make at least one acquisition this year and expects to make five acquisitions in the next three years.