Salem Investment Partners

Salem Investment Partners is an investment firm with over $500 million under management. We specialize in debt and equity investments in privately-held, lower middle market businesses. Our principals have completed over 150 investment transactions in companies across a variety of sectors and business cycles. We are licensed by the US Small Business Administration to participate in its Small Business Investment Company ("SBIC") program. The program seeks to increase the flow of capital to emerging and middle market companies by providing flexible, low-cost capital. INVESTMENT CRITERIA INVESTMENT SIZE ▪ $2-10 million per portfolio company COMPANY CHARACTERISTICS ▪ Minimum Revenue: $10 million ▪ Minimum EBITDA: $1 million ▪ Sustainable free cash flow ▪ Proven management team with at-risk capital ▪ Diversified customers, vendors, and markets INVESTMENT STRUCTURES ▪ Interest-only, fixed rate, subordinated debt ▪ Subordinated debt with nominally priced warrants ▪ Minority equity co-investments INDUSTRY FOCUS ▪ Business and healthcare services ▪ Light manufacturing ▪ Consumer products ▪ Wholesale distribution ▪ Recurring revenue business models TRANSACTION TYPES ▪ Private equity-sponsored buyouts ▪ Management and family-driven ownership transitions ▪ Acquisitions ▪ Recapitalizations ▪ Growth capital GEOGRAPHY ▪ Southeast, Mid-Atlantic, and Midwest regions of the US ("East of the Mississippi")