CAIFU CAPITAL PARTNERS
Equity Partner Solutions for Expanding Businesses
ABOUT US
Caifu Capital consists of an agile and responsive team that specializes in growth equity investments within the burgeoning Southern California market, by providing extensive expertise in orchestrating private equity transactions. Our primary objective within the private equity network is to secure minority equity stakes in companies, with no intention from our investors to engage in day-to-day operations. Given this hands-off investment approach, a thorough due diligence process is imperative due to the resultant limited control over business operations. This process entails a comprehensive evaluation encompassing the management team's capabilities, product or service offerings, financial health, and the long term strategic plan.
To facilitate this in-depth analysis, our team is deployed to conduct an in-depth assessment of the business, ensuring an optimal alignment with our equity partners. This strategy culminates in a mutually beneficial arrangement, whereby our equity partners not only enjoy a passive investment opportunity but also benefit from the addition of a diverse asset to their investment portfolio mix. Consequently, the management teams receive the necessary capital infusion to propel their company forward, all while retaining operational control.
OUR SERVICES
GROWTH EQUITY
Our team collaborates with private equity investors seeking strategic ownership stakes in businesses. We are tasked by investors to pinpoint companies characterized by robust management frameworks and a history of favorable financial performance in recent years. Given that debt financing from financial institutions typically presents a lower cost alternative to equity partnership, our initial recommendation for businesses often leans towards this financing route. Nonetheless, as the ratio of debt to equity on a company's balance sheet increases, banks may become hesitant to extend further financing. Consequently, our team undertakes comprehensive due diligence on potential companies to ascertain a compatible match with our private equity investors.
BRIDGE FINANCING
Frequently, companies seek assistance from our investor network for the provision of short-term loans, with the primary requirement being the assurance of repayment to the investor. Typically, such requests arise when a company anticipates receivables from substantial contracts, government grants, or R&D tax credits but needs immediate liquidity. In response, our investors may consider offering short-term bridge financing to support these enterprises during interim periods of financial need.
CAPITAL ADVISORY
In certain situations, a company may already have been approached by a private equity investor but seeks expertise in negotiating and structuring the transaction. Our firm offers specialized assistance across various facets of the deal, encompassing pre-transaction business valuation, analysis of synergies, post-transaction valuation, and the development of exit strategies for both owners and investors. Our comprehensive support ensures that each phase of the transaction is approached with strategic insight and meticulous attention to detail, aligning the objectives for both parties.