Why CEI?
Experienced and Cohesive Team of Investment Professionals
The professionals of Cornerstone have over 100 years of collective private equity investing experience in the middle market. Cornerstone’s partners have all been working together since 1998. The firm’s investment track record in middle market leveraged buyouts span numerous investment and economic cycles. The firms’s group culture is based on a strong sense of partnership, ethics and open communication.
Industry Expertise
Cornerstone has focused on the same core industries: Business Services, Healthcare and Specialty Manufacturing since its inception. Intimate knowledge of these industries enables the firm to approach investment opportunities with an informed viewpoint, act in an expeditious manner, and add value as knowledgeable investors. Each Cornerstone deal team uses its industry expertise to oversee and facilitate the implementation of effective operational and financial strategies for portfolio companies.
Reputation for Fair Dealing and Expedited Closings
Cornerstone has a well-earned reputation for transacting deals quickly and honestly. Cornerstone can complete due diligence quickly, fairly and with minimal disruption to an organization. Additionally, the firm has relationships with numerous senior and mezzanine debt providers allowing Cornerstone to quickly eliminate financing contingencies during the closing of transactions.
Operating Directors
Cornerstone has relationships with numerous seasoned executives who provide operational support, when appropriate, to portfolio companies. Cornerstone will typically add one or more industry executives to the Board of Directors of a portfolio company in order to bring an independent operation perspective, form a different/non-financially centric relationship with management and work with the company on specific projects. Many of Cornerstone’s Operating Directors are former senior managers from the firm’s portfolio companies whom have a demonstrated record of success with the firm.
Attention to Detail
Cornerstone professionals bring outstanding financial and operating skills to a transaction. Cornerstone professionals devote a significant amount of their time working closely with portfolio companies. Whether it is creating management compensation programs, working on debt refinancings or pursuing potential acquisitions, Cornerstone professionals roll up their sleeves and work closely with management teams to grow the business and create equity value for all investors. This attention to detail is exemplified by the fact that at least two partners work on each portfolio company.
Value Creation Strategies
Whether through a dividend recapitalization, a strategic buyer sale, a financial buyer sale, an IPO or a stock-for-stock merger, Cornerstone creates liquidity events for companies, management teams and LP investors over time through carefully orchestrated value creation strategies. Cornerstone’s drivers of value typically consist of earnings growth, acquisitions, offshore production (if relevant) and the penetration of new markets. In turn, these drivers of value bolster earnings allowing for multiple expansion and debt repayment over time, which ultimately benefit all of the equity investors.
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