Why does Capstreet invest in marine?
Capstreet has a history with businesses that serve the marine industry, through both products and services. It believes its marine and logistics knowledge help it scale these businesses profitably.
Capstreet states its view this way on its What We Do page:
Capstreet has a history of working with businesses that serve the marine industry with both products and services. Our knowledge of this industry overlaps with our broader transportation & logistics experience, and we believe we are well positioned to help businesses serving this end market scale profitably.
This thesis is shorter than most, and that is worth noting. Capstreet does not publish a list of marine sub-segments. It points to a history and to a knowledge overlap with transportation and logistics.
For an owner, the message is simple. If your company sells to or serves marine customers, the firm says it understands that end market. Its portfolio includes a terminal operator and cargo handler.
What kinds of marine businesses fit Capstreet?
A fit is a business that serves the marine industry with products or services. Capstreet says it works with both, and it ties marine to its logistics experience.
| Area | What Capstreet describes |
|---|---|
| Products | Goods sold into the marine end market |
| Services | Services for marine customers, such as cargo handling |
| Overlap | Transportation and logistics experience |
| Goal | Scale profitably |
| Company type | Entrepreneur-owned businesses with a tenured team |
Because the thesis is brief, ask the firm which marine businesses it has in mind. The best way is a confidential call. First read the criteria so you can bring your numbers.
How do Capstreet’s criteria apply to marine companies?
Capstreet publishes five criteria, and they apply to marine owners the same way they apply to every other industry. Each one is listed below.
- Entrepreneur-owned businesses services companies
- $3 to $15 million of EBITDA
- Primarily majority investments
- Entrepreneurs reinvest alongside Capstreet
- Ability to apply the Capvalue Framework®
The firm also says it looks for “a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche.” Marine customers depend on reliable service, which can build lasting relationships. A cargo-handling or products business with a strong niche matches the competitive advantages Capstreet describes. This is our reading, not a Capstreet claim.
Its $3 to $15 million EBITDA range sits in what many call the lower middle market. EBITDA means earnings before interest, taxes, depreciation and amortization. It is the profit measure Capstreet’s range uses. In a buy and build plan, the first business is the platform company, and later purchases are added to it.
Which marine companies has Capstreet backed?
Capstreet lists one marine company in its portfolio. It is a realized investment. Status is shown as Capstreet publishes it on its portfolio pages.
- GulfStream Marine: Past, Fund III. A marine terminal operator and marine cargo handling company on the U.S. Gulf Coast. Its services include cargo handling, warehousing and other value-added services for shipping companies, third party logistics providers and manufacturers. It was acquired by Logistec Corporation in 2018.
What does Capstreet do after it invests?
Capstreet applies its Capvalue Framework® in three steps: Research, Build Scalable Platform, and Drive Business Transformation. Across its history, the firm reports 50+ Platform Acquisitions and 200+ Add-on Acquisitions.
- Research. Perform deep research to identify markets and build relationships with key entrepreneurs.
- Build Scalable Platform. Invest in top talent and technologies, and provide functional expertise for scale.
- Drive Business Transformation. Develop a long-term strategic roadmap and execute a buy and build strategy.
Distribution International, another portfolio company, lists the marine end market among several it served. Read its case study. For logistics technology, see the transportation and logistics page.
There can be no guarantee that Capstreet will be successful in applying its Capvalue Framework®.
Next step
If your company serves marine, read the full deal criteria, then start a confidential conversation through the contact page. You can also call 713-332-2700 or email connect@capstreet.com. See all industries Capstreet lists.
Frequently asked questions
What marine companies does Capstreet invest in?
Capstreet works with businesses that serve the marine industry with products and services. It ties its marine knowledge to its transportation and logistics experience. Owners should also meet the firm's criteria, including $3 to $15 million of EBITDA.
What was GulfStream Marine?
GulfStream Marine was a marine terminal operator and cargo handling company on the U.S. Gulf Coast. It offered cargo handling, warehousing and other value-added services. Capstreet lists it as past, Fund III, and says it was acquired by Logistec Corporation in 2018.
Does Capstreet invest in shipping companies?
Capstreet's published thesis speaks of businesses that serve the marine industry with products and services. It does not mention vessel owners. Ask the firm directly if you operate ships, and start with a confidential call.
How does marine connect to logistics?
Capstreet says its knowledge of the marine industry overlaps with its broader transportation and logistics experience. It believes this helps it scale marine-serving businesses profitably. The logistics page covers its supply chain technology focus and its six named areas.
