Centerman Capital, LLC

Background

Founded in November 2012, Centerman Capital, LLC is a private equity investment firm based in Needham, Massachusetts. The firm specializes in providing strategic growth capital and CEO/CFO advisory services to fast-growing, early-stage companies, particularly in the food, beverage, nutrition, and consumer-facing service sectors. Centerman Capital's mission is to support entrepreneurs by offering targeted capital investments coupled with hands-on support to accelerate growth. The firm's approach is inspired by the role of a centerman in ice hockey, emphasizing excellence in all zones of the competitive business landscape.

Key Strategic Focus

Centerman Capital focuses on opportunities that feature differentiated, on-trend products or services with a competitive advantage, operate in growing, on-trend categories, and are led by scalable founders with a passion to win. The firm's strategy includes:

1. Angel Investments: Principals make personal capital investments in the businesses they support, demonstrating a strong commitment by being actively involved.

2. Hands-On Support: Assisting entrepreneurs daily with routine and unforeseen decisions by providing disciplined advice based on deep expertise and experience. This includes offering a suite of finance, accounting, and executional services to manage day-to-day activities, scalable as portfolio companies evolve.

3. Network Connections: Utilizing an extensive network of key service providers and functional experts to connect portfolio companies with cost-effective partners, enabling growth with a lean structure. This also involves mobilizing networks to generate new business opportunities for portfolio companies.

4. Growth Capital: Through the Power Play Fund I & II, providing portfolio companies access to larger investment capital needed to accelerate emerging growth.

Financials and Funding

As of 2016, Centerman Capital's 10 portfolio companies generated revenues of $70 million, with forecasts for 2017 exceeding $130 million. The firm manages the Power Play Fund I & II, each designed to make significant direct investments into portfolio companies to accelerate growth.

Pipeline Development

Centerman Capital's portfolio includes a diverse range of companies in the food, beverage, nutrition, and consumer-facing service sectors. Notable investments include:

Biena Foods: A company specializing in chickpea-based snacks.

Big T Coastal Provisions: Known for its seafood products.

Cappello's: Offers grain-free, paleo-friendly foods.

Element Snacks: Provides organic, gluten-free snacks.

J. Lee's Gourmet BBQ Sauce: A three-time reigning world BBQ sauce champion.

ZP Group: A professional services and solutions firm.

These investments reflect Centerman Capital's commitment to supporting innovative and high-growth potential companies in their respective markets.

Technological Platform and Innovation

Centerman Capital leverages a suite of technological tools to enhance its operations and support its portfolio companies. The firm's tech stack includes:

Google Hosted Libraries: For content delivery.

Open Graph: For content management.

Module Federation and Webpack: For development purposes.

React and jQuery: JavaScript frameworks and libraries.

New Relic: For real user monitoring.

Gunicorn: Web server.

These technologies enable Centerman Capital to maintain efficient operations and provide robust support to its portfolio companies.

Leadership Team

Centerman Capital's leadership team comprises experienced professionals with deep expertise in investment and advisory services:

Bob Craig: Founder and Chief Executive Officer.

Scott Webster: Partner.

Adam Kaufman: Operating Partner.

This team brings a strong network of key partners, a culture-based focus, and a relentless passion for setting up entrepreneurs for sustainable success.

Competitor Profile

Centerman Capital operates in the venture capital and private equity industry, focusing on early-stage consumer products companies. Key competitors include:

Bain Capital: A global investment firm with a diverse portfolio.

Blackstone: A leading investment firm specializing in private equity, real estate, and more.

Vista Equity Partners: Focuses on investments in software, data, and technology-enabled businesses.

Hellman & Friedman: A private equity firm investing in various sectors.

Thoma Bravo: Specializes in software and technology-enabled services sectors.

Advent International: A global private equity firm investing in various industries.

The Carlyle Group: A global investment firm with a diverse portfolio.

Centerman Capital differentiates itself by focusing on early-stage consumer products companies and providing hands-on support to accelerate growth.

Strategic Collaborations and Partnerships

Centerman Capital has established significant collaborations and partnerships to strengthen its market position and innovation capacity. Through its Power Play Fund I & II, the firm offers portfolio companies access to larger investment capital needed to accelerate emerging growth.

Operational Insights

Centerman Capital's strategic considerations in relation to major competitors include:

Market Position: Focusing on early-stage consumer products companies allows Centerman Capital to carve out a niche in the venture capital and private equity industry.

Competitive Advantages: The firm's hands-on support, extensive network connections, and growth capital offerings provide distinct competitive advantages over other investment firms.

Strategic Opportunities and Future Directions

Centerman Capital's strategic roadmap includes:

Expansion of Portfolio: Continuing to invest in differentiated, on-trend products or services with a competitive advantage.

Enhancing Support Services: Further developing hands-on support and tactical solution services to meet the evolving needs of portfolio companies.

Leveraging Technological Platforms: Utilizing advanced technologies to enhance operational efficiency and support portfolio companies effectively.

By building on its current strengths, Centerman Capital is well-positioned to achieve its future objectives and support the growth of its portfolio companies.