Portfolio Partners
Since 2001, LongueVue Capital has partnered with lower middle market companies from a variety of industries to build exceptional businesses and create substantial value for all stakeholders.
Current Investments
Realized Investments
Designer & Manufacturer of Balloons & Instrument Kits for Interventional Spine & Radiology
Consolidated and Realized as Part of Zavation Transaction in June 2021
Consumer
LVC Consumer Investment Focus Targeted Subsectors & LVC Focus
Subsectors
- Baby Products & Services
- Consumer Services
- Consumer Tech
- E-commerce
- Fitness & Outdoor
- Health & Wellness
- Home Improvement
- Home Office
- Household
- Lifestyle
- Lighting Fixtures
- Pet & Pet Services
- Pool Services
- Recreation
- Specialty Interiors
- Sporting Goods
LVC Consumer Themes
E-Commerce & Direct to Consumer Disrupting Supply Chain
- DTC model is increasing speed to market and lowering barriers to purchase.
- Supply chain rationalization is increasing pricing pressure in traditional channels.
- Supply chain disruption is now a powerful differentiator and is creating opportunities for new entrants.
Digital Age Revolutionizing the Consumer Value Chain
- Greater access to information is empowering more educated consumers.
- Fundamental shift in consumer preference to e-commerce from traditional brick and mortar.
- Data collection is transforming targeted marketing and increasing capture rates.
- Consumers now expect near-immediate delivery.
Premiumization and Wellness Focus Drive Brand Equity
- Perceived premium quality is increasingly important to the consumer and establishes greater pricing power.
- Consumer shift towards natural, organic, and health-focused products is transforming quality and pricing expectations for consumer basics, with consumers attributing greater value to specialized brands.
- Consumers have more knowledge of health and wellness than ever before, creating better understanding of: (1) physical fitness, (2) healthy consumption, (3) mental wellness, (4) mind- body connection, and (5) the importance of preventative measures.
Experience, Community, and Purpose
- Millennials desire purpose-driven interaction, experience, and community and are more likely to identify with unique brands whose values align with their own.
Relevant Transaction Experience
Industrial Services
LVC Industrial Services Investment Focus Targeted Subsectors & LVC Focus
Electrical Services
- Power Distribution
- Electrical Controls
- Process Instrumentation
Mechanical Services
- Specialized Mechanical & Piping
- Construction, Maintenance, Turnarounds, & Expansions
Specialty & Other Services
- Niche Manufacturing
- Value-Added Rental
- Water Infrastructure
- Environmental
- Safety, Inspection, & Compliance
Midstream/Downstream Services
- Refining / Petrochemical Plant Services
- Pipeline Maintenance & Inspection
LVC Industrial Services Themes
Increase Utilization & Refresh Aging Infrastructure
- Plant spending and upgrades driven by increased global demand, aging infrastructure, and large and long-term supply of low-cost hydrocarbon resources
- Substantial installed base of industrial facilities operating in a highly corrosive environment
- As plants age, critical process units’ risk of failure increases significantly, requiring consistent and recurring maintenance investment
- Deferrals and other factors yield expectations for significant turnaround season over coming years – reversion to mean activity levels
Focus on Niche, Recurring Services
- Service companies with recurring repair and maintenance offerings can grow in all commodity price environments
- Differentiated product and service offerings persevere in down cycles while commoditized offerings face compounded headwinds
- Operators expect technical expertise and product differentiation from key vendors
Zero Tolerance for HS&E Risk and Unplanned Downtime
- Downtime in major facilities, pipelines, and infrastructure is cost prohibitive
- With stricter regulations, heightened penalties, and litigation exposure, operators have no tolerance for health, safety, or environmental risk
- Preemptive inspection and testing are becoming smarter, less invasive, and more efficient
- With a tightened labor market and shortage of qualified personnel, new technologies, risk analysis, and automation are driving efficiencies
Alternative Energy Solutions Continuing to Gain Traction
- Technology has narrowed the gap between fossil fuels and alternative energy sources
- Government and industry are increasingly focused on environmental impact and carbon footprint
- Supermajor oil companies have dedicated substantial capital towards developing alternative energy solutions
Relevant Transaction Experience
Healthcare
LVC Life Sciences Investment Focus Targeted Subsectors & LVC Focus
Clinical Services
- Clinical, Regulatory, Biometrics, & Quality Consulting
- Site and Patient Recruitment
- Health Economics & Outcomes Research
- Medical Communications
- Clinical Trial Packaging
- Site Management Organizations
- CROs
- Clinical Trial Technology
CDMO Services
- Formulation
- Analytical Method Development
- Clinical Trial Material Manufacturing
- Commercial Manufacturing
- API Synthesis
Lab Services
- Analytical Method Development
- Sterility Testing
- Compendial Testing
- Other
Value Added Service Suppliers to the Cell & Gene Therapy Market
- Formulation
- Essential Ingredients, e.g. Plasmids, Buffers, Media
- Equipment, e.g., Bioreactors, Columns, Contact Components
Other
- Cold-chain Logistics
- Consulting
- Software
- Compliance and Quality Offerings
LVC Life Sciences Themes
Ballooning Healthcare Spend Pressuring Life Sciences
- The aging population and the pace of government spending are putting significant pressure on drug prices
- Greater focus on increasing medication adherence through innovative therapies and patient engagement
- Increased focus on artificial intelligence and machine learnings to enhance efficiency of drug discovery
- Arising opportunities exist for new technology, analytics, and outsourcing to reduce costs
Disruptive Technologies Displacing Other Therapies & Existing Supply Chains
- Wave of investment in new technologies creating fragmented value chains
- New niche service providers gaining scale and importance to service supply chain
- Higher price curative and large molecule therapies may place pressure on legacy small molecules
- Increase in combination therapies of drugs with diagnostics/devices
Continued Push to Outsourcing
- Emerging companies driving innovation have limited infrastructure, increasing outsourcing demand
- Margin pressure on established players driving outsourcing growth
- Complexity increasing role of niche operators with specialized knowledge or skills
Evolving Clinical Trial Landscape Leaves Opportunity for Nimble Players
- Consolidation has created mega players, creating opportunity for more nimble, niche players
- Increasing complexity of clinical trials creates need for more flexible outsourcing approaches and resource models
- COVID-19 has accelerated the push towards decentralized trials and wearables
- Health economics becoming more critical in the face of increasing pricing pressures and drug complexity
Increasing Regulatory Scrutiny
- Companies deploying technology and analytics throughout clinical and commercial supply chain to increase visibility
- Increased focus on by sponsors to meet growing regulatory hurdles paired with growing drug complexities
LVC Medical Contract Manufacturing Investment Focus Targeted Subsectors & LVC Focus
Front End Services
- Product Design & Engineering
- Prototyping & Low Volume Manufacturing
- Regulatory Services
- Packaging Design Services
Specialty Component Manufacturing
- Thermo Molding
- Micro Molding
- Multi-Component Thermoplastic
- Liquid Silicone Rubber
- Catheter Components (e.g. Balloons, Heat Shrink Tubing, Complex Extrusion)
- Precision Drilling
- Precision Grinding
- Precision Machining
- Laser Processing
- Specialty Wire
Manufacturing Services
- Assembly & Packaging
- Coverings & Coatings
- Logistics Management
LVC Medical Contract Manufacturing Themes
Large, Growing, and Stable MedTech Market
- Strong demographic trends underpin steady growth in MedTech
- Emphasis on speed to market despite rising regulatory burden requires efficiencies gained with strong outsourcing partners
Fundamental Shift to Primary OEM Partner
- Shift from historical “overflow” manufacturing and assembly model to primary OEM partner has reduced lumpiness and unlocked stable growth within contract manufacturing
- Continuous technological innovation / complexity and increased OEM focus on core competencies are accelerating the move to specialized outsourced providers
- Growing reliance and continued shift of ancillary services to outsourced manufacturing partners is enhancing customer stickiness and increasing switching costs
Fragmented Market with Opportunities for Nimble Competitors
- Fragmented market with large players of scale that focus almost exclusively on the top 10 OEMs, creating opportunity for nimble smaller players with value-added capabilities
Ideal LVC Target Company Characteristics
An Ideal LVC Candidate will Incorporate Two or More of the Below Differentiating Characteristics
- Ability to manufacture complex components and devices
- Value-added offerings to assist OEMs with burdensome front-end services (product design / development, packaging design and validation services, quality and regulatory services, etc.)
- Best-in-class manufacturing services to drive growth (assembly and packaging, coverings and coatings, logistics management, etc.)
- Founder / management team at an inflection point looking for an experienced partner with resources to accelerate growth and drive value creation
- EBITDA in range of $3mm-$15mm for platform acquisition candidate
LVC Healthcare Investment Focus Targeted Subsectors & LVC Focus
Healthcare Services
- Contract Manufacturing
- Clinical / Pharma Services
- Healthcare Distribution
Healthcare Providers
- Senior Living Owner/Operator
- Behavioral Health
- Clinical Practices
Medical Devices
- Instrumentation
- Implant OEMs
- Innovative Technologies
Healthcare IT (HCIT)
- Cost Containment
- Patient-Centered Software or Data
LVC Healthcare Themes
Reduced System Costs
- Value-based models are driving shift to lower-cost care settings
- Cost accountability is leading to granular spending review
- OEMs are searching for creative cost containment solutions
- Arising opportunities exist for technology and specialized software
Improved Patient Outcomes
- Increasing reliance on data and analytics
- Growing solutions to prevent hospital borne infections (as hospitals now pay)
- Accelerating pressure to improve/reduce readmission rates
- Outpatient savings require less complexity / invasiveness
- Greater focus on increasing consumer engagement
Technology that Addresses Needs & Macro Trends
- Cost containment is driving innovation and technology
- Growing investment in IT to track patient information, improve diagnosis, drive efficiency in processes, reduce costs, and provide seamless integration from consolidation
Consumer Focused Model
- Accelerating care shift to outpatient settings and retail clinics
- Increasing investment in well-defined consumer segmentation to address specific needs and perspectives
- Growing niche operators with specialized knowledge or skills in areas such as care delivery or analytics
- Technology is improving consumer engagement
- High demand for concierge and other high-end services
Operating Partners
Investment Team
Relevant Transaction Experience
Designer & Manufacturer of Balloons & Instrument Kits for Interventional Spine & Radiology
Consolidated and Realized as Part of Zavation Transaction in June 2021
Precision Manufacturing
LVC Precision Manufacturing Investment Focus Targeted Subsectors & LVC Focus
End Markets
- Aerospace & Defense
- Consumer
- Diversified Industrial
- Energy
- Food & Beverage
- Healthcare Products & Medical Equipment
- Packaging & Material Handling
- Transportation
LVC Precision Manufacturing Themes
Increasing Importance of Value-Add Contract Manufacturers
- A growing base of niche operators with specialized knowledge and skills has enabled OEMs to outsource at higher rates and focus more resources on new products, brand development, and sales and marketing.
- Value-add contract manufacturers collaborate with clients to enhance the engineering and manufacturability of components, improving quality and driving down costs.
- Clients increasingly value new product ideas, prototyping solutions, and rapid response times.
- Focus is shifting to service and all-in product failure cost rather than unit price.
Technology is Driving Manufacturing Process Efficiency
- Internet of Things technologies are becoming widely embedded into production processes and equipment to inform strategic decisions through real-time, critical information flow.
- Growing reliance on end-to-end supply chain and operations management tools is increasing supplier touchpoints and OEM integration and deepening relationships.
- 3D printing has reduced prototyping lead times while greatly increasing tooling efficiency.
- Predictive maintenance technologies and repetitive monitoring tests are helping to reduce unplanned outages, decrease costly repairs, and extend machinery life.
Unique Operational Capabilities and Continued Service Enhancements
- Automation continues to dominate the manufacturing process.
- Smaller manufacturers are able to more effectively compete thanks to more flexible terms and payment options (including pay-per-use) from machine and tooling manufacturers.
- A heightened regulatory atmosphere has increased demands on quality and compliance capabilities.
- Time based competition models create differentiation with faster response times by compressing cycle times and driving efficiencies.
- Manufactures are nearshoring domestic production to manage tariffs and government incentives.
- Green manufacturing processes are becoming a factor in outsourcing decisions.
Relevant Transaction Experience
Transportation & Logistics
LVC Transportation & Logistics Investment Focus Targeted Subsectors & LVC Focus
Value-Added Warehousing & Distribution
- Contract Logistics
- E-commerce Fulfillment
- Kitting & Assembly
- Inventory Management
- Freight Consolidation / Deconsolidation
Specialized Asset Light Transportation
- Specialized Domestic Forwarding
- Supply Chain Management
- Last Mile Delivery
- Differentiated Brokerage
Other Targeted Subsectors
- Healthcare Logistics
- Hazmat / Chemicals
- Specialty Packaging Services
LVC Transportation & Logistics Themes
Outsourcing Non-Core Business Processes
- B2B and B2C companies continue to outsource logistics to refocus their human and financial capital on core competencies and core business lines
- Manufacturers of all sizes are increasingly comfortable outsourcing inventory management, light assembly, and customization to 3PLs
- Shippers look to 3PLs to deliver cost reductions, strong cargo visibility, and high service levels with best-in-class supply chain solutions
- Deep expertise in logistics and network density is required to manage rising consumer expectations and advancements in technology
- Environmental considerations are becoming an important theme in transportation
E-Commerce Transforming Supply Chain
- Consumers are making a dramatic shift to online shopping, even for large and bulky items and perishable goods
- Major e-commerce players are setting expectations for free and fast delivery and free returns, necessitating inventory distribution
- Warehousing and distribution centers are penetrating metro areas to move inventory closer to the consumer
- First, middle, and last mile transportation providers contend with driver shortages and tight labor markets as retailers attempt to drive down the cost per delivery
- COVID-19 has accelerated the shift from brick-and-mortar purchasing to e-commerce across all product categories
Technology is Mission-Critical for 3PL Success
- Analytics and real-time visibility into shipment status are increasingly important for both logistics clients and end consumers, requiring significant investments in IT infrastructure across the supply chain
- 3PLs rely on automation and technology to actively manage inventory levels, optimize routing and fulfillment protocols, and increase transportation density
- Technology-enabled operations and heavy IT integration increase customer stickiness and retention levels
- A balance of proprietary, internally developed software and off-the-shelf tools is critical for small to mid-sized 3PLs to manage IT spend
Investment Team
Relevant Transaction Experience
Food & Beverage
LVC Food & Beverage Investment Focus Targeted Subsectors & LVC Focus
Co-Manufacturing
- Co-Manufacturing
- Co-Packing
- Blending
- R&D and Testing
- Retail, Private Label & Food Service
Food & Beverage Ingredients
- Meal/Flavor Enhancers
- Nutrients / Enrichments
- Premixes
- Natural / Organic
Branded
- Packaged Frozen / Refrigerated
- Better-for-you Snacking
- Ready to Eat / Drink
- Functional / Wellness
Logistics & Other Services
- Value-Added Warehousing
- Sourcing & Supply Chain
LVC Food & Beverage Themes
Private Label & Emerging Brands Stealing Share from Big Food; Increased Reliance on Outsourcing to Win
- Consumer preferences have shifted away from Big Food toward innovative, craft food & beverage, which lack the resources and expertise to meet rapid growth
- Consumers increasingly perceive private label brands to be at parity or superior to national brands and place increasing trust in value
- Co-manufacturers are relied upon as value-added thought partners that enhance the manufacturability of products, improving quality and driving down costs
Fewer Meals Are Being Made from Scratch, With At Home Food Consumption & Snacking on the Rise
- Changing demographics and social patterns have upended how we consume food
- As baby boomers enter retirement years and millennials finally enter family formation, at-home food consumption is expected to rise
- Meal enhancers and meal helpers growing 3x grocery as consumers need “fresh” help at home
- Additionally, changing lifestyles and tastes no longer support traditional “three-a-day” meal construct, replaced instead with regular snacking, which now accounts for 50% of all eating occasions
Today’s Generation Is Placing Increased Value on Clean, Transparent, Fresh, & Functional
- Consumer interest has shifted to food and beverage products with traceable, clean ingredients and clear, better-for-you attributes
- Evolving consumer preferences have pushed product and ingredient innovation to deliver functional benefits, addressing specific conditions (i.e., lactose intolerance, Celiac) as well as promoting overall health and performance
- Frozen and prepared foods offer convenience, portion control, and less waste with new options incorporating organic, vegan, and more diverse flavor attributes
Relevant Transaction Experience
Specialty Packaging
LVC Subsector &
End Market Focus Areas
Subsectors
- Printing
- Converting
- Coating
- Co-Manufacturing/Packaging
- Value-Added Distribution
- Extrusion
End Markets
- Food & Beverage
- Food Processing
- Agriculture
- Healthcare
- Consumer / Personal Care
- Pet & Household Goods
- Industrial Applications
- Building Products
- Shipping & Transportation
Specialty Packaging Themes
E-Commerce & Brand Fragmentation are Driving Demand
- Massive shift in consumer preference to e-commerce, accelerated by COVID-19, is increasing demand for packaging across all formats, channels, and end markets
- Growing number of emerging brands and SKU fragmentation are driving volume increases
Consumers are Demanding Sustainability & Transparency
- A recent Amcor survey found that 47% of consumers were highly motivated to change purchase behaviors through a pragmatic approach to sustainability; additionally, the development of cost-effective sustainable inputs and broader sustainable solutions is lowering cost of adoption
Increasing Importance of Flexible, Value-Added Providers
- Premiumization of packaging and the increased importance and frequency of promotional activity, driven by an explosion of new, small-sized CPG companies that are primarily focused on brand and product development, is highlighting the importance of packaging providers that can provide custom, value-added solutions
Technology is Driving Manufacturing Process Efficiencies
- New, high speed equipment across all segments of the packaging value chain is decreasing costs for customization and enabling smaller run sizes due to greater efficiencies and less start-up costs, generating incremental margins for both the manufacturer and customer
Industry Fragmentation Presents Consolidation Opportunity
- It is estimated that there are over 2,000 packaging businesses in the U.S. and a limited number of large-scale players, creating meaningful opportunity for consolidation
Packaging is a Recession Resistant Industry
- Diverse, non-discretionary end markets, contractual pass-thru mechanisms, and generally low asset intensity shield packaging producers from significant cyclicality, and packaging businesses tend to be stable even in recessionary environments, which was exhibited throughout COVID-19 pandemic
Relevant Transaction Experience
CONTACT US
LVC is headquartered in New Orleans and maintains an office in West Palm Beach, FL to help us provide national coverage for transaction sourcing and portfolio company support.
We would love to hear more about your business. To discuss an opportunity or share materials about your business, please contact Charles Cox or fill out the form.