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OUR THESIS

The Essential Owners Fund invests in and acquires middle market, essential industry companies and utilizes employee ownership as a tool to create economic stability for essential workers, reduce operating volatility for companies, and generate meaningful returns for investors.

Why invest in employee ownership?

Stronger overall business*:

8.21%

HIGHER VALUATIONS COMPARED TO COMPANY MEDIAN

+10.3%

HIGHER NET PROFIT MARGIN

30%

SALES OVER 10 YEARS

More stable employee base*:

5-12%

HIGHER WAGES

20%

MORE RETIREMENT ASSETS

53%

LONGER MEDIAN JOB TENURE

*Sources: NCEO research; Dept, of labor data https://www.dol.gov/sites/dolgov/files/ebsa/researchers/statistics/retiremnment-bulletins/private -pension-bulletin-historical-tables-and-graph.pdf ; NCEO, Kellogg Foundation, Dept. of Labor, https://www.ownershipeconomy.org/

Our Unique Value Proposition vs. Private Equity

01

We can customize the employee ownership structure to your unique need.

02

We stay around post transaction to implement the EO structure, align the team, and support strategy.

03

We have deep F&B networks across sales, operations, innovation and business strategy through our investors and LPs.

04

We are patient capital, backed by family offices with long timelines, that value strategy over speed.

Flexibility to invest across a range of structures

Employee ownership can take several different structures, including:

  • Stock Awards

Stock awards give employees an award based on the value of the company’s stock at a specified period of time.

  • Employee Owned Trust (EOT)

EOTs preserve the business for the benefit of employees, who can receive a share of the company’s annual profits through dividends.

  • Employee Stock Ownership plan (ESOP)

An ESOP is a qualified retirement plan used to transfer a company’s stock to a trust administered on behalf of employees. Details on how ESOPs are implemented can be found here.

Industry Focus

  • Food and Beverage

  • Agriculture

  • Healthcare

Investment Criteria

  • $15M+ to $100M in revenue

  • Over $1 million in EBITDA (or a compelling track record of positive or increasing EBITDA)

  • 50+ employees

  • Available debt capacity

  • Strong and continuing executive or management team

  • Owners and leaders willing to explore shared ownership structures

  • Opportunity for measurable improvements to employee wages, wealth, and or working conditions while preserving enterprise value