Otter Capital

Otter Capital is a private equity firm based in Palo Alto, California, specializing in control equity investments within the established middle-market sector. Unlike traditional venture capital firms that often focus on early-stage, high-growth startups, Otter Capital targets mature businesses with proven profitability and significant growth potential. The firm's strategy revolves around acquiring a majority stake in companies, partnering closely with existing management teams to drive operational efficiencies and strategic expansion. Their investment philosophy prioritizes long-term value creation through active ownership and hands-on support, aiming to build sustainable growth trajectories for their portfolio companies.

The firm primarily seeks businesses that demonstrate strong fundamentals and generate substantial earnings. Specifically, Otter Capital targets companies with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ranging between $3 million and $15 million. While they maintain an industry-agnostic approach, they are particularly interested in businesses that possess defensible market positions, robust cash flows, and clear opportunities for market expansion or operational improvements. Their investment thesis is centered on identifying 'outstanding businesses' that, in their judgment, have compelling growth prospects and can benefit from strategic capital infusion and experienced guidance.

Given their focus on acquiring businesses with EBITDA between $3 million and $15 million, and considering typical private equity transaction structures, Otter Capital's equity check size can be estimated. For companies within this EBITDA range, enterprise values typically fall between $15 million and $120 million, assuming common valuation multiples. As a control equity investor, Otter Capital's direct equity investment often represents a significant portion of the transaction value, typically ranging from $3 million for smaller deals to potentially $50 million for larger acquisitions. This substantial capital commitment underscores their dedication to becoming a true partner in the growth and success of their portfolio companies.