New River is a private equity fund focused on investing in and partnering with talented entrepreneurs or businesses to help make them truly great companies and deliver superior value to their customer, employees and shareholders. Our investment strategy is focused primarily on fundamental themes that we believe guide growth companies.
We believe that businesses today are being impacted by a number of factors, including i) outsourcing; ii) changing demographics ; iii) health care costs; iv)) increased reliance on knowledge capital; v) shortened product lifecycles; and vi) globalization.
Collectively, these factors create an environment that requires companies to continually innovate and refine their businesses in order to take advantage of new opportunities or risk losing market share. More importantly, these factors provide a unique opportunity for those companies that are well capitalized and have a proven business model to deliver superior results and gain market share via a relentless pursuit of strategic and operational excellence.
New River believes that many of these companies can benefit from significant guidance and support as they refine, implement and grow their business models.
New River is uniquely positioned to assist such companies prosper. Each of the firm's principals has developed, managed and operated growth businesses, including some of the leading business services, retail, training, and entertainment companies. This experience includes concept formation, business plan development, operations, mergers and acquisitions, and private/public financing. Collectively, these backgrounds allow us to bring a wealth of expertise and an extensive network of industry experts to every partner company.
To provide the most benefit to partner companies, we focus our efforts on three main areas; Business Services, Health Care Services, and Consumer Brands. We strongly believe that these areas represent significant opportunities for investors and are capable of generating double-digit growth and profit margins. We seek companies with a highly recurring revenue stream and diversified revenue base through which there is an opportunity to create significant competitive advantages via scale, branding and/or the introduction of new revenue sources into the existing customer base.
While we invest in companies at different stages of maturity, we have a strong preference for those companies with proven business models seeking expansion or "buy-out" capital. We will consider public and private companies. We prefer to be the lead investor in most private financings. However, we make more passive investments when the company has a respected lead investor.