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What makes Scott Capital different?

SOURCE OF CAPITAL.
Scott Capital is a private investment firm investing long-term accumulated personal capital.

INVESTMENT PHILOSOPHY.
Preservation of capital is at the core of our investment philosophy. Scott Capital's goal is to create value over the long term.
Accordingly, our investment strategy encompasses a "buy and build" approach.

INVESTMENT HORIZON.
Our commitment to our investments and value creation means we can act as a patient, long-term partner.
Our investment timing is not dictated by any artificial timeframe.

  SCOTT CAPITAL TRADITIONAL PRIVATE EQUITY
Source of Capital Personal capital Institutional and third parties
(using other people's money)
Investment Philosophy • Patient long-term investors
• Focus on value creation
• Buy and build strategy
• Capital preservation (zero failures)
• Short-term investors
• Focus on generating high IRR
• Maximize leverage
• Portfolio effect (loss on some investments)
Investment Time No artificial timeline (10+ year horizon) 3 – 5 years
Incentive • Value creation
• Building companies we are proud to own
• Fund management
• Return of capital to investors
Exit Philosophy Management driven Life of fund and fundraising
Typical Capital Structure Conservative leverage Maximize leverage to boost returns
Investment Process 45 – 60 days 60 – 90 days
Financing Arrangement Focus on select few lenders with
long term relationships
Dictated by market price and leverage
Alignment of
Interests with Management
Mutually compatible Low alignment
Board of Directors Invite value added directors Typically with fund insiders


FOR INTERMEDIARIES
Scott Capital Partners makes commitments it can deliver. We pride ourselves on our ability to close transactions in an orderly and timely fashion. We invest for the long term. We can be creative with our transaction structures, yet believe that simplicity leads to greater success.


FOR BUSINESS OWNERS/OPERATORS
As a business owner or operator, you can expect from Scott Capital complete alignment of interests. Scott Capital invests only in quality businesses and makes decisions based on creating long-term, sustainable value for our investments. More importantly, we are investing personal capital, not capital from third-party institutions. We structure our transactions to allow maximum flexibility in the go-forward operations. We are never constrained by an overleveraged balance sheet.


FOR MANAGEMENT TEAMS
Scott Capital believes that a company's management team is the most important factor in the success of a business. Accordingly, we only invest in companies that have high quality management with a track record of success and a willingness to create shareholder value. Our role is to empower the management team to be successful. All of our portfolio company key managers are allowed to invest in the company as well as participate in an incentive program that allows key executives to share in the success of the company.