We approach every investment as a long-term partnership between the firm and the entrepreneurs we sponsor. Our objective is to be the value-added venture partner to emerging companies, working closely and cooperatively with management to build long-term value.

Gaebler Ventures will make two types of investments, initially focusing on Business Service Companies and later expanding to Other Investments.

Business Service Companies

These portfolio companies provide business services to other companies. They compete in highly competitive "commodity" markets but win business by delivering exceptional service to their external customers. At the same time, they focus internally on maintaining profitability and positive cash flow.

In creating these companies, our preference is to partner with experienced individuals who can leverage our resources to build de novo service organizations, initially growing them organically with minimal capital investment. We structure our businesses such that founding executives and employees can achieve large financial rewards if they are successful.

A typical target revenue ramp for our portfolio companies is $1 million in first year revenues, $5 million second year, and $10 million third year—with operating margins of 20% or greater. After the third year, we believe our companies will be established as contenders in their market and we will then grow them more aggressively through geographic expansion and additional investment.

Other Investments

As a second phase of investment, we will co-invest with other private equity firms in early- and mid-stage companies that are pursuing high-risk, high-return business opportunities.

We will concentrate principally on technology-centric companies who target fast growing emerging markets, where they have the potential to achieve dominance in their niche. In addition, we are interested in new products and services that address large existing markets where we can invest in companies that have the potential to build market share and drive substantial revenues and profits.

In all cases, our investment is contingent on the existence of a group of potential acquirers existing who will likely have a strong rationale to target our investment for acquisition within three to five years subsequent to our investment.