Nicolet Capital’s focus on the Plastics, Packaging and Converting segment makes us better partners with management and better investors. We are recognized by companies in the industry and their advisors as a preferred partner and an educated, reliable buyer. We have context that allows us to put challenges and opportunities into perspective. Nicolet Capital’s experience in the industry allows us to more quickly and proactively mobilize resources with specific knowledge that can assist our companies. This experience also enhances our ability to identify and execute highly strategic add-on acquisitions to our portfolio companies. Our advisory board consists almost entirely of current and former Plastics, Packaging and Converting executives. The relevant experience of these executives augments our deep industry knowledge in a way that is unique to more generalist advisory boards.
Nicolet Capital does not spread its resources over a large portfolio and invests substantial personal capital in every transaction. As a result, we have both the time and the motivation to give each investment our personal, undivided attention at every stage. This focus makes a difference, both in getting the transaction done and in aligning our interests with management post-closing. We also believe concentrating our effort produces the best investment returns for our investors. It reduces the potential for style drift and allows us to dedicate the attention of senior professionals to our management partners and the value creation process.
Proprietary Due Diligence
Nicolet Capital develops its own conviction around an investment thesis and does not outsource its investment decisions. Consultants performing generic “market studies” often have little prior knowledge of the competitive and industry dynamics affecting a company. Nicolet Capital draws on deep industry experience and leverages its focused advisory board to assess the strategic drivers that will most impact a prospective investment. We utilize our extensive industry contacts to directly solicit insight from others that have a highly relevant and informed perspective. When we do require diligence support, we identify the very best knowledge leaders and target their diligence to those areas that truly require specialized technical expertise.
Junior Debt Support
Providing the junior debt financing benefits the transaction process, our portfolio companies and our investors:
Partnership with Management
Nicolet Capital strongly prefers investing in companies where key existing management will remain in place. Our industry expertise and advisory board resources allow us to play a constructive and active role in value creation. However, we appreciate that the operating and industry experience of the company’s existing management team is unique to the particular needs of the company. This experience is not easily replicated by other managers or outside advisors. Nicolet Capital partners with management to create customized incentive programs that ensure that management and employees are rewarded for realistic, achievable value creation.
Minority Investment Expertise
Some of Nicolet Capital’s most successful prior investments were minority equity interests. Minority investments require specialized expertise and skills. Our prior experience allows us to work within the limitations of existing, often complex, shareholder and governance arrangements. Nicolet Capital takes a creative, constructive and solution-oriented approach. We tailor the structure of our investments to minimize dilution to existing owners. We emphasize reasonable protections, remedies and liquidity rights as opposed to unilateral control.