The Pioneer fund ia Private Equity Fund focused on small to mid-market businesses in the Pikes Peak Region.
Benefits
• 3+ years of $500K-$1.5M EBITDA
• Growth Potential – $2.5M-$5M over 3-5 years
• Strong Community Connections
• Adding jobs to the community and supporting our tax base
• Giving back through financial contributions/sponsorships
• Deep roots in the Pikes Peak Region
• Financial Return for Investors
• Target 12% – 15% annualized return
Robust Military/Defense Industry & Nonprofit Sector but Lacking Mid-Market Business Diversification
Colorado Springs Creates Businesses
Many Companies Never Realize Growth Potential
Job Creation Never Realized
A Pike Peak Region Private Equity Fund
• Local Capital & Executive Expertise
• Keep Company Headquarters Anchored in COS
• Build Community Commitment
• Grow Quality Jobs & Retain Graduates
• Diversify Local Careers & Economy
• Financial Return for Investors with Visible Community Impact
• Colorado Springs MSA is at ~750K people
• Expected to grow 400K to 1.1M by 2040
• Our economy will continue to grow
• We have a driven entrepreneurial culture
• 70% of new state jobs will be ≤ $34K/yr
• Vast majority of grads move away (no jobs, no culture, etc.)
• New companies struggle to breakout
• Limited local investment & exit options
Utilizing a traditional PE structure heavily favoring the investor
• Calls – 3% at close, callable % per acquisition
• 2% annual management fee, ends @ year 5 &
treated as contributed capital in waterfall
• 85% profit to investors
• $12.5M Equity Offering, plus local bank debt
• Purchase 6-8 companies in the $3-7M range
• History of profitability – no distressed business
• 5 year investment period with 5 year
liquidation
• Portfolio companies receive board &
executive expertise from the management
co., investors and network
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