Investment Strategy

openGate_08_03 OpenGate Capital's investment strategy is focused on lower-middle market, cross-border, corporate divestitures and carve-outs. As specialists in acquiring opportunities, OpenGate Capital offers Fortune 1000 companies swift, certain and confidential solutions to their divestiture objectives. OpenGate Capital combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The firm has a successful history of acquiring businesses across a wide array of global industries and is especially skilled in cross-border acquisitions which represent greater than half of all the firm's transactions. Funded with internal and external sources of capital in excess of $500 million, OpenGate Capital continually pursues opportunities to acquire businesses and create new value. OpenGate has built relationships with leading enterprises including Harte-Hanks, Constellium, Tessenderlo Group, Zodiac Marine & Pool, KPN, Schlumberger, Cascades, StoraEnso, Arvin Meritor, Le Monde and Philips. VIEW PDF

OpenGate's investment strategy is to acquire non-core, yet functioning business divisions that may not have reached their potential, or no longer fit with the parent company's long-term goals. The firm prefers the following deal characteristics when considering new opportunities:

OpenGate Acquisition Characteristics:

  • Non-core division of larger corporation
  • $50 million - $1 billion in revenue
  • EBITDA negative, break even, or positive
  • Located in North America, Europe, South America
  • Complex and challenging opportunities/situations
  • Motivated seller

Factors Motivating Seller to Divest:

  • Growth strategy excludes one or more business divisions
  • Divest quickly, with certainty and confidentiality
  • Improve shareholder value
  • Protect brand equity
  • Safeguard customers and employees
  • Ensure a timely and seamless transaction