Hey everyone - quick question for you all as I'm trying to help out a buddy of mine. He owns a private company which operates a chain of nutrition/supplement stores throughout an affluent suburb of a Tier 1 city. He's seeking to raise capital (preferably a minority equity investor as opposed to debt capital / taking out a loan) to enhance equipment, open additional locations, etc. Ballpark target of $4MM - $5MM for potentially up to 49% of the business.
My general question to you all is - which types of firms (if any) would be interested in this type/size of transaction? I assume maybe some niche flavor of VC firm (although I acknowledge the small transaction size, non-tech, additional diligence required, etc.) Anyone have any ideas (or even credible sources to look into other smaller private transactions)? Or would a private placement to multiple individual investors (or 1-2 HNWI) make more sense? Just trying to point my buddy in the right direction and see if I can identify any specific firms who would have appetite for this...appreciate it in advance.
Doubt VCs would touch this; too low growth. You're better off looking at search funds or family offices. If it's in a Tier 1 city you should be able to find tons of MBA graduates who have opened up their search funds looking for that type of investment. He may have to give up control though, depending on the funds mandate.
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