Southfield Capital generates returns through operational success and relies on prudent leverage levels to finance deals

The Partners seek to employ responsible levels of leverage when structuring acquisitions. Lower leverage levels ensure the business has adequate free cash flow to support growth and can sustain market shifts and potential dips in business performance. Building the infrastructure to support accelerated growth often tasks senior management in new and challenging ways, which can negatively affect short-term financial performance.

Appropriate leverage ensures that Southfield portfolio companies can endure short-term dips in performance while building out the infrastructure for long-term success. The Partners look for meaningful management roll-over in platform acquisitions. They believe economic alignment is a critical part of coordinating management and Southfield as they develop and execute the investment strategies.