1. No control. Unlike most PE firms, Mauloa makes non-control investments, perfectly content owning less than 50% of the equity.
Kevin O'Connor, co-owner of O’Connor Plumbing, said, "Mauloa's refreshing approach to growth capital allows us to maintain control of the company while leveraging their operational expertise and formidable network, in order to make a great community business even better."
2. No debt. Unlike most PE firms, Mauloa doesn’t lever its companies and doesn’t rely on debt to manufacture returns.
Danny McKearan, owner of Ducky Recovery, said “Mauloa allowed us to prosper because we weren’t forced to put debt on our company, maintained a strong balance sheet, and continued to grow organically.”
3. No exit timeline. Unlike most PE firms, Mauloa doesn’t force owners to sell their companies, leaving them in control of their own destiny.
Bob Brody, Chairperson of AlphaStaff, said “Most PE firms would have forced us to sell by now. Given its investment structure, Mauloa cannot, and we continue to mutually benefit from our ability to build for the long-term.”
4. Annual distributions. Unlike most PE firms, Mauloa generates annual distributions for both its investors and business owners.
Donnie Gross, founder of TLK Group, said “Thanks to our aligned incentives, Mauloa helped us grow cash flow, allowing all parties to enjoy annual distributions.”
5. Size and structure. Unlike most PE firms, Mauloa is not in it for the fees; we are intentionally a smaller fund, to access a larger investment universe. But, we are agile and can scale up from $10 million to a $100M investment per company, if necessary, by using sidecars.
Andrew Schwartzberg, a Mauloa anchor investor, explained, “Having been a limited partner in large PE firms, it’s not uncommon to pay exorbitant fees, without strong returns to show for it. Mauloa is the opposite, generating annual cash flow via distributions and utilizing a hybrid fund structure to reduce fees.”