Value Identification by Lincolnshire Management
Uncovering Value
In the competitive world of private equity, success largely hinges on the ability to identify undervalued companies and unlock their hidden potential. Lincolnshire Management, a New York-based private equity firm with over three decades of experience, has a long, proven track record of uncovering and realizing value in lower middle market businesses. Through a disciplined investment approach, deep operational expertise, and a focus on partnership, Lincolnshire has established itself as a leading investor in the space.
At the heart of Lincolnshire’s investment strategy is a commitment to finding opportunities where others may not look. The firm’s dedicated origination team, led by Co-Managing Partner, Tad Nedeau, evaluates 1,000-2,000 potential deals each year [MK1] across a wide range of industries. While Lincolnshire operates as a generalist investor, it has developed specific expertise in business services, niche manufacturing, and consumer goods and services. This industry focus, combined with the team’s extensive network of contacts and willingness to roll up their sleeves on complex situations, allows Lincolnshire to uncover unique investment opportunities.
Lincolnshire’s recent acquisition of Banker Wire is a prime example of the firm’s ability to identify value where others may not see it. Banker Wire, a leading manufacturer of wire mesh products for industrial and architectural applications, fit squarely within Lincolnshire’s target profile – a well-established business with a strong market position and significant growth potential. Managing Director,George Henry, and Principal, Nico Vega Llona, recognized that with the right strategic guidance and operational improvements, Banker Wire could expand into new markets, drive sales growth, and improve margins. This vision for value creation, along with Lincolnshire’s experience in the niche manufacturing sector, gave the firm the conviction to pursue the investment.[MK2]
A Robust and Repeatable Process
Once an opportunity is identified, Lincolnshire conducts extensive due diligence to validate the company’s business fundamentals and develop a comprehensive plan for value creation. The firm’s investment professionals, many of whom have direct operating experience, work closely with management teams to assess the company’s strengths, weaknesses, and growth prospects. This hands-on approach allows Lincolnshire to gain a deep understanding of the business and develop a tailored strategy for driving improvements.
A critical aspect of Lincolnshire’s due diligence process is evaluating the strength of the management team. As Lincolnshire’s President, Michael Lyons noted, “The right people will help move the business in the right direction.” [MK3] Lincolnshire looks for management teams that are not only capable and committed, but also open to working collaboratively with the firm to execute on the value creation plan. In situations where additional talent is needed, Lincolnshire leverages its network to recruit experienced operators who can bring fresh perspectives and skills to the business.
Lincolnshire’s Partnership Approach
Once an investment is made, Lincolnshire’s in-house operations team works hand-in-hand with portfolio company management to implement the value creation plan. This partnership approach is a key differentiator for Lincolnshire, as it allows the firm to drive tangible improvements from day one. The operations team, led by Lyons, brings a wealth of experience and a toolkit of proven strategies for optimizing business performance.
Lincolnshire’s investment in True Sports illustrates the firm’s operational capabilities and agility in action. When faced with declining demand in the golf equipment market, Lincolnshire worked with True Sports’ management team to diversify the business into the hockey and lacrosse markets. The firm helped True Sports establish its own brands in these categories, closed underperforming facilities, optimized manufacturing processes, and completed strategic acquisitions. These initiatives not only mitigated the impact of the challenging golf market but positioned True Sports for long-term growth.[MK4]
Lincolnshire’s success with True Sports also highlights the firm’s patience and long-term orientation. While some private equity firms may have been quick to cut costs and pursue a rapid exit in the face of industry headwinds, Lincolnshire took a measured approach focused on building a stronger, more diversified business. This willingness to stay the course and make the necessary investments to drive lasting value is a hallmark of Lincolnshire’s approach.
Value-Add ESG Integration
Another element of Lincolnshire’s value creation strategy is its focus on environmental, social, and governance (ESG) factors. The firm recognizes that responsible investing not only benefits society but also drives better long-term outcomes for portfolio companies. Lincolnshire works with management teams to develop customized ESG initiatives that align with the company’s unique business model and industry dynamics.
Desch Plantpak, a leading manufacturer of sustainable horticulture containers, exemplifies Lincolnshire’s commitment to ESG. Under Lincolnshire’s ownership, Desch has expanded its use of recycled materials, optimized its manufacturing processes to reduce waste, and earned recognition as one of the Best Managed Companies in the Netherlands. [MK5] By prioritizing sustainability, Lincolnshire has helped Desch differentiate itself in the market, reduce costs, and position itself for long-term success.
Lincolnshire’s disciplined investment approach, operational expertise, and partnership mentality have yielded impressive results over the firm’s 36-year history. The firm has consistently generated strong returns for its investors, a function of Lincolnshire’s ability to identify undervalued companies, drive operational improvements, and create lasting value.
Positioned for Success
Looking ahead, Lincolnshire is well-positioned to continue its success in the middle market. With a dedicated team of experienced investment professionals, a proven value creation playbook, and a commitment to responsible investing, the firm has the capabilities and mindset to thrive in any economic environment. As the private equity landscape evolves, Lincolnshire’s focus on partnership, patience, and value identification will remain key differentiators.
For middle market companies seeking a partner to help them reach their full potential, Lincolnshire Management offers a compelling value proposition. The firm’s track record of success, industry expertise, and hands-on approach make it an attractive choice for management teams looking to take their businesses to the next level. With Lincolnshire’s support, these companies can unlock hidden value, navigate challenges, and achieve long-term success.
In a crowded private equity market, Lincolnshire Management stands out for its unwavering commitment to value identification and creation. Through a disciplined investment approach, deep operational expertise, and a partnership mentality, Lincolnshire has established itself as a leader in the middle market. As the firm continues to identify and invest in undervalued companies, it is poised to continue creating lasting value for its portfolio companies.