philosophy
PAF Investments is a deep value investor that acquires businesses, performing and non-performing loans, business assets and divisions/segments, and senior “top of the capital structure” credit positions. In our underwriting and assessment we undertake a value-oriented analysis, including enterprise value, asset value, free cash flow, constituency leverage analysis, working capital assessment and needs, and risk management. We take a very active, hands-on approach in our investments.
PAF Investments is attracted to opportunities that include the following:
- Stressed, Distressed and Financially Troubled businesses that lack options and liquidity for continued efficient operations
- Alignment of Interests between management, other key stakeholders, and PAF as to investment strategy and desired outcome
- Lower Middle-Market businesses, having revenues from $2-$25 Million
- Unique “Stories” that others may view as too complex, untraditional, fixed asset intensive, or difficult to gain comfort in financial or operational performance
- Complex Balance Sheets that maybe simplified via PAF investment
- Operational Execution Opportunities where our diverse team can provide quick value beyond capital
Our funds are committed and available. We do not need to raise money or seek co-investors. We can close quickly, and in all cash transactions. We seek to generate uncorrelated absolute returns with volatility by exploiting inefficiencies and lack of liquidity in the lower middle-market, and by capitalizing on situations that are not mainstream investment opportunities.