Investment Criteria

We build platforms in essential,
non-discretionary services markets

We focus exclusively on essential, non-discretionary services industries. Our belief is that these markets are characterized by recession-resilience, stable margins and long-term secular growth.  We believe that these large, fragmented markets possess long-term potential for add-on acquisitions, a core part of our strategy in building differentiated, market-leading companies.


We target the following company size ranges:

Platforms:     $2 to $25 million of EBITDA
Add-ons:        Any Size

Essential, Non-Discretionary Services

We focus on three key verticals: Business-to-Business Services, Non-Discretionary Consumer Services, and Supply Chain & Infrastructure Services.  See below for more detailed information about each of these focus areas.

Business-to-Business Services

SUB-VERTICALS

Facility Services
Professional Services
Industrial Services

THESIS

Mission-critical outsourced services and technology for corporate and government customers across IT, HR, legal, compliance, and back-office functions

GROWTH DRIVERS

  • Non-deferrable, mission-critical maintenance
  • Code-driven safety and compliance requirements
  • Increased use of outsourcing
  • Labor and talent shortages
  • Increasing customer demand for quality
  • Changes in climate / severe weather

Non-Discretionary Consumer Services

SUB-VERTICALS         

Home Services
Auto Aftermarket

THESIS

Essential home and auto services, which benefit from acyclical demand from non-discretionary consumer spending

GROWTH DRIVERS

  • Millennial home ownership - shift from DIY to DIFM
  • Aging housing stock / home investment
  • Vehicles in operation and shift to EV
  • Consumer / homeowner preferences and lifestyles
  • Growth of digital marketing benefiting scale

Supply Chain and Infrastructure Services

SUB-VERTICALS                 

Transportation & Logistics
Infrastructure Services
Specialty Distribution

THESIS

Increasing complexity, evolving supply chains, and energy transition driving growth in T&L and infrastructure

GROWTH DRIVERS

  • Continued penetration of e-commerce and just-in-time logistics
  • Growing needs and deferred investment in critical infrastructure
  • Megatrends in EV, climate change, and population demographics driving investment

The Benefits of a
Buy-and-Build Strategy

We believe that building companies through a series of acquisitions, investing in integration that benefits scale, and investing in the right systems, people, and technology to grow organically is a repeatable, winning strategy.

Add-on Acquisitions Accelerate Growth
    • The buy-and-build strategy centers around M&A and integration to quickly scale platform companies
    • Fragmented markets present a large volume of M&A opportunities 
    • Building through multiple acquisitions diversifies customers, suppliers, and geographies, mitigating risk across the platform

Scale & Operational Sophistication Leads to Outperformance
    • Economies of scale create synergies and sustained margin expansion
    • Efficient integration drives value and often leads to premium valuation at exit
    • Acquiring into different geographies and customer bases unlocks cross-selling opportunities

Ability to Start Small
    • Agellus is willing to start with a smaller company when a larger platform investment opportunity is not available
    • Pre-identified executive talent allows for efficient plan execution
    • We believe the flexibility to enter a market without a larger platform gives us a strategic advantage