Finrock Growth Partners

Finrock Growth Partners was formed by a group of entrepreneurs to invest in and actively manage a promising private company. Finrock is focused on creating long-term value and provides access to both capital and experienced operators. We plan to invest in one company at a time and focus all of our attention on growing it rather than building a diverse portfolio. We work closely with the existing management while offering an attractive exit option for owner/operators seeking to transition out of the day-to-day management of their business. Investment Criteria Finrock is actively investing in the software and recurring services sectors. We are particularly interested in businesses that meet the following investment criteria: INDUSTRY SECTOR ▪ Growing market for products and services (>10% annual revenue growth in the last 3 years) ▪ Providing software or services to businesses or the government (Business to Business) ▪ Focused on an industry or a niche functional area COMPANY PROFILE ▪ 3 + years of profitable operations ▪ Differentiated product/service offering ▪ Dominant market position in a specific niche GEOGRAPHY ▪ Businesses headquartered in the US or Canada FINANCIALS ▪ Revenue: $5 to 50MM ▪ EBITDA: $1 to 10 MM ▪ 75% or more recurring revenue from the same cohort of customers year over year ▪ High gross margins (> 70% for software and > 35% for service businesses) ▪ Growing > 10% year-over-year for the last 3 years OWNER OBJECTIVES ▪ Transition from running the day-to-day operations and/or retire ▪ Majority sale of the business to achieve liquidity