Corridor Capital
Our seasoned investment team and dedicated in-house operations team provide an exceptional level of support for our portfolio companies across strategy, operations and finance. We collaborate with management to build the infrastructure and efficiencies necessary for sustainable, scalable growth for companies in business services and distribution.
44% of the Corridor Capital portfolio companies have been women-led since 2014. We invest in amazing leaders and look forward to partnering with world-class women-run businesses.
Corridor Capital targets companies led by management teams who desire an active partner. We prefer to work with entrepreneurs and family-owned businesses that have not yet realized the benefits of hands-on, institutional ownership.
While we purchase a controlling interest in companies in our Private Equity strategy, sellers often roll over a meaningful portion of their equity to benefit from the Corridor transformational approach, giving owners the potential for subsequent liquidity events after creating significant value together.

We have successfully invested in companies with the intention to support:

Liquidity and generational transitions

Funding of and engagement to implement institutional infrastructure

Unlocking of revenue scaling

Strategic development, pursuit, acquisition and integration of companies for service, product and market expansion

Provide access to increased capital investment sources for women-led businesses
Structured Equity
Corridor consistently invests and provides support regardless of the economic environment. During this period of volatility, Corridor’s capital and operational support can help owners and companies gain access to:

Liquidity during revenue uncertainty

Immediate partial cash out to owners

Infrastructure investment despite the market conditions

Resources for opportunistic acquisitions
The COVID-19 “uncertainty gap” can be bridged through a structured capital partnership.
Flexible Solutions
Example structural mechanisms:
- Preferred non-control capital investment with capital used as both / either a dividend to owners and / or invested into the business – provides for owner liquidity and capitalizing the business for growth
- Low / no amortization debt securities that accrue interest – provides flexibility to enable the business to invest cash in growth initiatives
- Earn-out payment triggered once EBITDA target is achieved – addresses timing of when company returns to pre-COVID-19 levels
- Call options – lock in appropriate market valuation

Independent Sponsors
Corridor Capital provides seasoned Independent Sponsors a pathway to:
Own a far larger portion of the equity, potentially >50%
Achieve material governance influence, and potentially, control of the company
We believe in the critical role of quality independent sponsors. Corridor is a high integrity, collaborative, operationally transformational partner with a track record of working successfully alongside several independent sponsors. We share asset-level advisory fees and can provide broken deal cost protection. Corridor provides debt and equity, works quickly, ensures transparency and respects our partners’ contributions to value creation.
The Corridor Independent Sponsor Approach
High leverage LBO with limited equity from fee rollover and Corridor equity; effective for lower-multiple acquisitions:
~95% Debt
~5% Equity

High coupon, partial cash pay and asset-appropriate amortization
Seller Paper
Subordinated debt may be required

Independent sponsor to own a material portion of the equity, 35-70%
Investment Criteria
Corridor Capital invests in both healthy, growing businesses, as well as more complex situations, particularly those requiring growth support or operational or financial engagement. We invest in companies meeting these criteria:
- EBITDA of $2-8 million
- Diverse and stable customer base
- Strong industry position and market fundamentals
- Identifiable value creation possibilities
- Entrepreneur or family-owned, desiring our highly active partnership
Target Business Services Sectors
We consider a variety of industries, including but not limited to:

Business Process Outsourcing
Critical value-added services that fulfill specialized functional activities or workflows

Marketing Services
Specialized marketing strategy and communications, events, customer acquisition, and digital marketing services

Value-Added Distribution
Distribution augmented by value-added solutions such as merchandising, assembly and resource planning

Training and Education
Intellectual property rich specialty training and education
How We Transform
Transformational Private Equity: Our Operational Approach
Enhance organizations by optimizing processes, implementing systems and investing in capabilities
Drive scalability by developing and augmenting a human capital plan with targeted external expertise
Establish a finance and accounting organization that supports timely and accurate reporting, analysis and planning
Accelerate revenue through sales organization effectiveness, new channel entry and innovation
Accelerate growth through acquisition strategy development, target identification and transaction execution and operations integration
Portfolio
Current

Association Headquarters

CEO Warrior

FMT Solutions

Integrity Solutions

World Wide Land Transfer
Realized

Arvan

Circuitronics

Connecting Point Marketing Group

Consolidated Flooring

Control Devices

Create & Cultivate

Indo~European Foods

Innovative Office Products

Nationwide Property & Appraisal Services

SPM Marketing & Communications

U.S. Industrial Tool & Supply Company

Wetmore Tool & Engineering
The Corridor Team

Craig Enenstein

Iman Navi

Shaun Wright

Cici Zheng

Kerry-Anne Dinwoodie

Tae Macias

Stacie Droege

Tommy Lee

Michael Liu

Jack Chason

Kate Speese

Nancy Eissa
Advisors

Jean-Francois Heitz

David Mounts

Richard Pachulski
Contact
For transactions and inquiries, please contact:
Shaun Wright
Managing Director, Business Development
shaun@corridorcap.com
310.442.7004
Corridor Capital, LLC
12400 Wilshire Boulevard
Suite 645
Los Angeles, CA 90025
310.442.7000