The partners of Guard Hill Holdings have worked together for over 20 years on over 40 transactions such as FreightCar America, Transportation Technologies Inc. and Fuel Systems. They bring operating experience from companies such as General Motors, Global Metal Technologies, Dana, and Electronic Data Systems and investment experience from Butler Capital, Chemical Venture Partners, Lehman Brothers and Salomon Brothers.
Guard Hill Holdings is unique because our $50 million of committed equity capital comes from the partners and a small group of related outside entities. Guard Hill Holdings does not collect management fees from our investors. Our focus is exclusively on capital appreciation, closely aligning our interests with lenders and management teams.
The Guard Hill team relies on its hands-on operating heritage to provide proven management expertise to help grow and improve the profitability of each of its investments. We prefer to invest in corporate divestitures, turnaround situations, family owned companies and partner with lenders on workout opportunities.
INVESTMENT AND OPERATING PHILOSOPHY
Guard Hill Holdings invests its own capital and provides proven hands-on operating expertise to each of its companies so we make fewer investments than larger funds. In fact we rarely take capital from outside investors because we cannot productively put large amounts of capital to work and maintain our high investment and operating standards.
Guard Hill Holdings can add the most value to situations where business improvements are required. Our most successful investments are corporate divestitures that required an improvement in operating management. Guard Hill Holdings looks for situations where our team can add significant value.
We do not believe that one approach fits all situations and we look at each opportunity individually to evaluate its capital appreciation potential.
Often, a large corporation makes a strategic decision to divest a division that does not directly enhance its core business. Guard Hill Holdings has tremendous experience in transitioning divested operations into successful independent companies. This is a complex process that involves significant operational assistance as well as culture change. We have successfully implemented entire management systems (HR, ERP, operating metrics) for entities that were spun out or their parent companies without appropriate systems. Guard Hill Holdings has also built new management teams when existing management stays with the parent company.
OWNERS DESIRING LIQUIDITY
Many business owners have created significant value in the course of building their businesses, but typically realize their net worth is trapped in the retained earnings of their company. These owners often decide to seek liquidity and diversification of their assets. Guard Hill Holdings has worked successfully with many family owned companies and can provide references.
WORKOUTS AND TURNAROUNDS
Guard Hill Holdings is often recruited by lenders to come in and restructure an investment that is not performing. We can add value in restructuring the balance sheet and in improving the operating results of the company.