leapfrog capital partners, llc
Accelerated Growth
Leapfrog Capital Partners provides equity to established, growing companies to
accelerate growth. Target growth companies possess a proven profit model and
provide a product or service that has achieved demonstrable market acceptance.
Leapfrog Capital is flexible and creative in structuring its equity investments in order to
meet the specific needs of each company and its shareholders. Equity investments to
fund accelerated growth and working capital usually result in a minority ownership
position for Leapfrog Capital.
Acquisitions
Leapfrog Capital Partners provides equity to established, growing companies to
expand the scope of the operations via acquisition. Leapfrog Capital can be helpful in
the identification, negotiation and due diligence of potential acquisitions. Equity
investments to fund acquisitions can result in either a minority or a majority
ownership position for Leapfrog Capital.
Corporate Divestiture
Leapfrog Capital Partners seeks to acquire non-core subsidiaries of larger corporate
parents. These subsidiaries are usually profitable and have opportunity for growth,
but have lost the focus of the parent for a variety of reasons and may be run more
effectively if structured as an independent entity and managed by a focused,
standalone management team. In addition, these subsidiaries may need capital that
the parent was unwilling or unable to provide in order to execute their growth plans.
Leapfrog Capital Partners facilitates buyouts of these corporate divestitures, and often
simultaneously invests growth capital into the divested entity. Corporate divestitures
usually result in a majority ownership position for Leapfrog Capital
Generational Transition
Leapfrog Capital Partners seeks to facilitate generational transitions for profitable
companies with strong track records. An equity investment can help facilitate a
generational transition in which a second generation seeks to acquire control or a
significant minority ownership from the founder who is seeking liquidity. Depending
on the amount of the investment and the proportion of the existing equity being
redeemed, generational transition transactions can result in either a minority or a
majority ownership position for Leapfrog Capital
Industry Consolidation
Leapfrog Capital Partners provides equity to established, growing companies to
expand the scope of the operations via a series of acquisitions as part of an industry
consolidation strategy. Leapfrog Capital can be helpful in the identification,
negotiation and due diligence of potential acquisitions. Leapfrog Capital's equity can
be structured as a one-time investment or a line of equity capital that can be drawn
down as needed to fund acquisitions. Equity investments to fund industry
consolidations can result in either a minority or a majority ownership position for
Leapfrog Capital
Leveraged Recap
Leapfrog Capital Partners provides equity and arranges third party senior and/or
subordinated debt in order to execute leverage recapitalizations. A leverage recap is a
transaction that uses debt alongside equity to purchase a portion of a company's
ownership. Capital from a leveraged recap can be used to pay down existing debt
and/or equity investors, to fund a distribution to shareholders and/or to provide the
company with growth capital. Depending on the amount of the investment and the
proportion of the existing equity being redeemed, leveraged recaps can result in
either a minority or a majority ownership position for Leapfrog Capital
Management Buyout
Leapfrog Capital Partners pursues buyout transactions of attractive standalone
businesses as well as corporate divestitures alongside existing or prospective
management teams who are dedicated to creating and building value through equity
ownership. In addition to providing capital to execute the buyout, Leapfrog Capital
often invests growth capital into the new entity. By partnering with Leapfrog Capital,
management benefits from the additional expertise and relationships we provide
along with guidance at the Board level, but is free to run the day-to-day operations of
the company. Depending on the relative investments by management and Leapfrog
Capital, management buyouts can result in either a minority or a majority ownership
position for Leapfrog Capital.
PIPEs
Leapfrog Capital Partners seeks privately negotiated investments in public
companies that have lost the attention of the public market, but in which the profit
model and opportunity for growth remain intact. Having lost their sponsorship on Wall
Street, such companies are "orphaned," and typically fall under $150 million in market
capitalization. These companies generally trade at a discount to not only their growth
rates and comparable market multiples, but also to their private company
comparables. Orphaned companies often need capital, but are unable to effectively
access the public markets. Leapfrog Capital Partners invests in these companies
through creative equity and "equity-like" instruments. PIPEs usually result in a minority
ownership position for Leapfrog Capital
Shareholder Liquidity
Leapfrog Capital Partners seeks to provide shareholder liquidity for profitable
companies with strong track records. Such an investment may be attractive when an
owner seeks partial or total liquidity. Selling the entire company is one viable liquidity
alternative for owners who want to move on to other endeavors or retire. But for
shareholders who want to retain ownership in the company, a recap can provide the
best of both worlds - liquidity now and upside gains in the future. Depending on the
amount of the investment and the proportion of the existing equity being redeemed,
shareholder liquidity transactions can result in either a minority or a majority
ownership position for Leapfrog Capital
Working Capital
Leapfrog Capital Partners provides equity to established, growing companies to
accelerate growth. Target growth companies possess a proven profit model, although
they do not necessarily need to have achieved profitability at the enterprise level.
Attractive companies provide a product or service that has achieved demonstrable
market acceptance, but may need to invest in infrastructure and or require working
capital assistance to sustain superior growth. Leapfrog Capital is flexible and creative
in structuring its equity investments in order to meet the specific needs of each
company and its shareholders. Equity investments to fund accelerated growth and
working capital usually result in a minority ownership position for Leapfrog Capital
