Independently Sponsored: Wayfinder Capital Partners

What is your investment thesis or value proposition?

At Wayfinder, we identify and acquire businesses in the lower middle market, specifically those with $3M to $8M of EBITDA. Our primary areas of interest include manufacturing, distribution, business services, and anything sports-related, leveraging my background in professional sports. One of WCP’s distinct advantages is our ability to find a fair number of off-market deals, thanks to our deep network. We also believe in aligning our interests with those of our partners and stakeholders, which is why we personally invest in each deal we pursue.

WCP’s approach is characterized by strategic partnerships, where we build strong relationships with industry leaders and experts to enhance value creation. We actively work with portfolio companies through hands-on management to drive growth and operational improvements. Our focus on long-term value creation ensures sustainable growth and profitability, leading to long-term success for our investments. Furthermore, we bring empathy and understanding to our interactions with founders, recognizing the challenges of working hard for a dream and creating something special. Founders resonate with us because we appreciate their journey in how hard it was for them to get where they are today, and they appreciate my journey in professional baseball and how hard it was to make it to the MLB.

Any notable differentiators for the firm?

We have the ability to engage in meaningful conversations with any founder, creating a deep sense of respect and trust. We excel at finding well-priced off-market deals, providing unique investment opportunities to our investors. Leveraging my network from my MBA program at Northwestern’s Kellogg School of Management, we can source top-tier talent to help fill any gaps in the companies we acquire and put those people in leadership positions. We are committed to creating win-win structures for all parties involved in each transaction. Additionally, my experience playing in the MLB and winning a Bronze medal often piques people’s interest, which is a significant advantage in getting in the door and getting the deals done.

What are you looking for, and where are you seeing opportunities?

We are particularly interested in founder-led businesses—companies that their founders have led for an extended period. These businesses often exhibit significant growth potential and scalability. We also look for opportunities to enhance operational efficiencies and strengthen and expand sales teams. By leveraging the collective network of our investors, we aim to drive growth and add value to these businesses.

We see opportunities through various channels. Scraping the internet allows us to utilize online resources to identify potential deals. Networking is another crucial method as we engage in conversations with people within and outside our industry. Additionally, collaborating with brokers who have access to exclusive deals helps us find unique opportunities.

As an independent sponsor, we need to find deals that few others are aware of, creating a competitive advantage. This unique position allows us to uncover hidden opportunities and capitalize on them effectively.

FINALLY, CAN YOU REGALE US WITH AN INTERESTING OR FUNNY M&A STORY?

I’ll give you a few.

One memorable experience in my M&A journey involved a trip to Germany to meet with a manufacturer for a value-added distribution and installation company based in the States. The manufacturer loved us, and we were confident we had addressed all the legal aspects to protect us as the sponsor and our investors which was the reason for going over there.

We returned to the States full of excitement, with just about three weeks left to close the deal. However, the seller demanded an additional $2 million at the last minute. Needless to say, we didn’t proceed with the deal as the seller proved to be incredibly difficult to work with. 

On the bright side, I spent about five days in Germany with brats, pretzels, and incredible beer. We explored Munich and went to the “Disney Castle” called Neuschwanstein Castle. It was a great cultural experience, even if the deal didn’t pan out as expected.

BONUS: AN OLYMPIC STORY

My wife, who is amazing and whom I love very much, can be tough on me sometimes. In 2008, I went to the Beijing Olympics, where we won a Bronze medal. Now while it wasn’t gold, I was super proud and I told my wife that I was thinking about getting the Olympic ring tattoo on my arm. Her response was, “Why? You weren’t a real Olympian.” 

She went on to say, “You only played baseball.” Now, you have to understand, she was an All-American pole-vaulter at the University of Florida. Her reasoning was that track, swimming, and other Olympic athletes work their butts off every year, most of them not making a lot of money. She pointed out that my dream was to play in the MLB, not necessarily to go to the Olympics. Needless to say, we live in an ultra-competitive household and she’s not afraid to keep me humble. And I still don’t have that tattoo. Maybe someday. 

BONUS: A BASEBALL STORY

In high school, I had to write a paper for my English class about my career goals, so of course I wrote about my dream of becoming a Major League Baseball player. My guidance counselor told me to rewrite it because she said it wasn’t realistic. Well even as a teen, that didn’t sit well me with. I chose not to rewrite it, turned it in unedited, and accepted an incomplete grade because I wasn’t willing to compromise the vision and belief I had for my future. 

Baseball has taught me so many things about patience, resilience, and trusting the process…

I remember we had a series in Tampa, which was always fun because I had a lot of family and friends who would come out. In the first game of the series, I struck out four times against David Price, which is just about the worst kind of game you can have as a hitter. But the next day, I was back in the lineup and I went 3-4 with a home run. 

Baseball is a game of failure, and much like life, it can chew you up and spit you out if you let it. But the game has made me mentally tough and able to handle the challenges we face in investing.