Frequently Asked Questions

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What investors participate in your independent sponsor investments

Quadrillion Capital partners with accredited individual investors, family office investors, PE funds, and institutional limited partners.  We seek to acquire a minimum of 51% of the equity in each of our investments. We also are active participants in transaction are led by Private Equity funds and family offices were we partner side-by-side with investors who value our know how and capabilities. We seek to acquire a minimum of 51% of the equity in each of our investments. We are also active participants in transactions led by Private Equity funds and family offices, where we partner side-by-side with investors who value our know-how

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What equity investment opportunities do you offer to individual accredited investors?

Quadrillion Capital focuses on middle market companies in the technology, manufacturing, industrial, and services in the U.S. and Canada.

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How illiquid is the investment? What is the expected time horizon?

Most of our investments are usually illiquid for several years. The time horizon is driven by the investment thesis and our collective ability to add value to each investment

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How do I know these are solid businesses?

The businesses selected for equity investments are screened based on Quadrillion Capital's expertise and understanding of the likelihood of success of buying, improving, and selling these business over a period of time.  Quadrillion Capital takes a highly data driven approach to screening and due diligence of its potential investment opportunities to minimize risk and improve our understanding of what levers can be pulled to improve performance and facilitate growth in each investment opportunity

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How do I know that you know what you’re doing?

The Management Team has worked as private equity investors, line operators, and advisors to companies undergoing rapid transformation for the last 25 years.  Collectively, the team has over fifty (50) years of combined experience in screening, acquiring, operating, owning, and growing small and mid-sized businesses.

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How much control will you have over business operations and the decision to sell?

Quadrillion Capital seeks to acquire control interest in companies.  This means we have a majority interest in each company, decision making authority at the Board of Directors level, and influence decisions directly in each company.  We work with management teams to define specific initiatives to expand profits, improve operations, and enhance digital capabilities at each company we acquire.  These initiatives are then implemented by the company with an individual from our team assigned for oversight and support.  Our implementation model is highly collaborative and data driven, so our "risk" (or likelihood) of success on each initiative is high.  We invest in companies where we have deep knowledge and in investment situations that we feel favor our investors.

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Are you focused on specific industries?

We are experts in technology related, industrial related, and manufacturing related businesses.  Our private placement memorandum lists various industries within these sectors that we focus on for investment opportunities.

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Do you take geographical considerations into account?

We invest in companies that are headquarted in the United States only or where we can relocate headquarters to the US easily.  Many of our acquired companies will have operations internationally, and we have deep experience working in different countries (China, Japan, South Korea, Germany, France, UK, Australia, South Africa, et. al.) where we have significantly improved operations and grown sales.

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How many businesses do you currently invest in?

Today, Quadrillion Capital has several active technology investments its portfolio.  

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How many businesses do you plan to invest in each year?

Given our active involvement in each portfolio company, Quadrillion Capital intends to invest in no more than two (2) investment opportunities during each twve-month period.

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Why invest in undermanaged or underperforming businesses over new businesses?

Quadrillion Capital screens companies to understand if they have a reason to exist, a set of defendable advantages (like strong customer or supplier relationships, needed products or services, etc.), and tailwinds in their core markets.  We believe that acquiring companies with below average performance and getting them to average or above average performance relative to their peer group is a strong investment thesis for investors.  We seek to find companies that have correctible problems we can address.  Middle Market companies often suffer from a lack of capital, lack of talent, and inability to leverage digital tools.  Our team is well equipped and prepared to address these gaps and help businesses grow.

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Why are these businesses available at a discount? Does it mean the business model is flawed?

We focus on investment situations that are more complex than average.  This means that the acquisition candidates may require more time and effort to negotiate and it may involve organizing for additional risks.  All in, these more complex investment situations tend to be less competitive too, meaning that many investment firms shy away from them either because they don't want to invest the time or they don't have the capability to resolve the issues presented.  When an investment opportunity is less competitive, Quadrillion finds we can acquire the company for less money.

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How do you plan to grow the businesses you acquire?

At Quadrillion Capital, we develop an initiative-based plan before we buy each company.  We call this plan our "10^15 Plan."  10^15 (ten to the 15th power) is the number quadrillion! More importantly, 10^15 means the 10 initiatives we can implement in the first 15 month after we own a business that will materially improve the company's performance.  Each initiative is well defined and is grouped into the following areas: (1) cost reduction, (2) gross margin improvement (GMI), (3) revenue growth, (4) working capital management, and (5 ) digital enablement.  Our 10^15 plan is sequenced and co-owned by members of our team and people in each portfolio company.  Our 10^15 plan also shows how the company will grow profitability from the EBITDA level when we buy the company to its 'full potential' EBITDA, which is our target and the level at which we will look to sell the company

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Who are Quadrillion Capital's principals, and what are their backgrounds?

The Management Team has worked as private equity investors, line operators, and advisors to companies undergoing rapid transformation for the twenty five years.  Our private placement memorandum (PPM) has details on each person.  A quick summary is:

-  George Stelling (Partner) - Deep experience as a general partner of lower middle market private equity fund; leadership team member at NVIDIA, ON Semiconductor, and Franklin Mint; senior consultant/advisor at Bain & Company, Quadrillion Partners, and PwC.  Advisor to Perot Investments.

- Krista Stelling (Partner) - Deep experience as a chief marketing officer and leadership team member at Arteriors, Wisteria, and Quadrillion Partners; Marketing leadership experience at PierOne Imports and OKA; Strategy Experience at American Express and Bain & Company

twenty-five- Robert Mahoney - Deep experience and subject matter expert in sales and marketing.  Leadership roles at ON Semiconductor, National Semiconductor, Xicor, Altera, and other technology companies

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How much experience do you have improving operations and growing businesses?

We have more than 60 years of combined expertise in improving operations as investors, line operators, and advisors.  At Quadrillion Partners, members of the leaderships team generated over $300M in EBITDA improvements in portfolio companies for investors like TPG Capital, Apollo Global Management, Oaktree, and CVC Capital.  As line operators, the team has generated billions of dollars in enterprise value for companies like NVIDIA, ON Semiconductor, American Express, and others

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Do you co-invest with PE Funds or Family Offices?

Yes, the Management Team partners with private equity funds and family offices who are seeking co-invesment dollars from firms with our operational, data, AI, transformation, and technology expertise