Independently Sponsored

Independently Sponsored: Rox Capital

June SPOTLIGHT

Al Cameron

Founder & Managing Partner

FIRM OVERVIEW

Our competitive edge lies in our years of operating experience across diverse industries. Target companies will find a team that understands their day to day challenges, appreciates the meaning of business legacy, and values the team that built the company to where it is today.

Firm Profile
Based in Austin, TX
Full Exits
Majority or Growth Equity
Areas of Focus
Industrials
Manufacturing
Healthcare
Investment Criteria
Revenue: $3-15 million
EBITDA: $1-4 million
35% Gross Margin
5+ years in business
Founder-led teams

5 Questions with Al Cameron

What’s THE firm’s origin story?

Mark Sparrow and I attended high school together in San Antonio, TX. The beginnings of Rox Capital were in 2017 when Mark and I both lived in Dallas working for large public corporations. Mark had deep experience in operations, manufacturing, and lean process management in the building materials space. I had experience in sales, business development, marketing, and strategy in the medical device industry. In 2017, we both decided to leave our corporate careers and acquire a 35-year-old fastener and hardware distribution company in Austin, TX. Amifast became Rox Capital’s first portfolio company.

What is your investment thesis or value proposition?

Rox Capital looks for legacy businesses in the $1-4mm EBITDA range. We target majority buyout, first transaction deals. We then unlock value in these family businesses through professionalizing the systems and processes, and targeting organic growth via sales and business development strategies.

Any notable differentiators for the firm?

As independent sponsors, Mark and I come from an operational background vs private equity or financial. Our operational backgrounds are a differentiator for sellers who place high value on their company legacy and employee transition. We’ve “sat in the chair” much like the sellers we work with. Understanding the priorities and concerns of sellers help differentiate Rox Capital from other sponsors, allowing us to source proprietary deals as a preferred buyer.

What are you looking for, and where are you seeing opportunities?

We are currently looking at recession-resistant businesses with long legacies. We are particularly interested in companies that have endured multiple business cycles and have stable performance. Industries of focus include building materials, infrastructure-related businesses, manufacturing, and healthcare businesses.

Finally, can you regale us with an interesting or funny m&a story?

As mentioned, Mark and I bought a fastener and hardware manufacturing business in late 2017. The company did a lot of manufacturing overseas, including in China. We planned several trips overseas to build relationships with our suppliers. One key supplier was a younger factory owner and a really nice guy. At lunch he asked Mark and I, “My friends have been asking if I can get you to come play basketball with us. They all want to play against Americans, and you’re both pretty tall. Will you come play with us tonight?” He drove us to the gym where they played, far off the beaten path. We played hoops for a couple hours with all of his friends, who loved playing basketball against a couple American guys. In between games, everyone would stop for a smoke break! He remains a good supplier and would always ask about us coming back to play some ball. That’s one part of M&A and business operations we love — you never know what experiences are coming! Never a dull moment.

“Independently Sponsored”

Trivest has a long and successful track record of working and closing deals with independent sponsors. In this series, we interview a leading or up-and-coming independent sponsor about their firm. To mix things up, at the end of each interview, we ask our guest to recount a particularly memorable (and hopefully humorous) deal-making experience. Our goal is to deepen the knowledge and strenghten connections within the independent sponsor community.
Interested in taking part? Have a potential transaction to discuss?
EMAIL TONY HILL

About Trivest

Trivest Partners, with offices in Miami, Charlotte, Chicago, Los Angeles, Philadelphia, and Toronto, is a private investment firm that focuses exclusively on the support and growth of founder-led and family-owned businesses in the U.S. and Canada, in both control and non-control transactions. Since its founding in 1981, Trivest has completed more than 400 investments, totaling approximately $7 billion in value. The firm has over $4 billion in assets under management, with a growing team of over 60 professionals. Trivest is one of only 15 firms recognized by Inc. Magazine as one of the top founder-friendly private equity firms in three consecutive years.

Leave a Reply

Your email address will not be published.

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Spotify
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound
We've launched Founder Focus, a new video series.
This is default text for notification bar