Farol Asset Management

Overview

Established in 2011, Farol Asset Management is an independent, partner-owned private equity firm focused on control and non-control investments in the lower and middle market. The firm is led by a team of investment professionals with over 70 years of combined experience, having deployed over $1.4 billion in equity capital across various sectors. Farol seeks to build a diversified portfolio by investing across all industry sectors, typically pursuing buyout transactions in the lower and middle market in North America. Transaction types include buyouts, growth equity, carve-outs, take-privates, and special situations. The firm generally invests in niche companies that operate in stable industries, are market leaders with strong cash flow characteristics, and seek attractive entry points due to market inefficiencies that allow them to acquire strong companies at a meaningful valuation discount. The most critical part of their underwriting process is to identify multiple value creation opportunities, including cost savings, acquisitions/divestitures, new product introductions, and new market expansion, any combination of which, if executed by management, would allow them to generate strong risk-adjusted returns at exit. Farol's target is to invest between $5 million and $30 million in equity capital per transaction in opportunities brought to them by emerging managers, independent sponsors, entrepreneurs, and operating executives.

Investment Focus

• Experienced operators
• Emerging managers
• Independent sponsors
• Entrepreneurs
• Operating executives

Portfolio Companies