HV Capital Investors (HVCI) recently announced its investment in Charlotte Street Partners, a search fund headquartered in Evanston, Illinois. The investment was made through HVCI’s affiliate, RHV Capital (RHV).
A search fund is a pool of capital raised to financially support the efforts of an entrepreneur, or a team of entrepreneurs, to locate a privately held company for acquisition. Charlotte Street Partners seeks a company with an enterprise value between $5 million and $30 million.
RHV was formed in 2008 to focus on search fund investments. It has completed 25 search fund investments since its formation.
“We’re proud to be affiliated with RHV,” stated Jon Selame, founder of Charlotte Street Partners. “RHV has a reputation for making sound investments and bringing value to fund founders as well as fellow fund investors.”
“We found Charlotte Street Partners approach to acquisition targeting to be compelling,” said Glenn Healey, Managing Director for RHV. “Identifying targets and screening them rapidly for upside potential is critical to search fund success. I believe that Charlotte Street Partners has the potential to deliver a strong return.”
Healey continued, “Our specialty finance company, HVCI, focuses on the lower middle-market and looks for companies with recurring service revenues. Search funds are using similar investment criteria, so forming RHV to make search fund investments was a natural extension of our investment strategy.”