Financing Focus

NCP believes having senior business people on the board of directors is critical to the long-term success of our portfolio companies

At Needham Capital Partners (NCP), we welcome the opportunity to act as either lead investor or as a follower along with other high-quality institutional investors. We believe the participation of knowledgeable, value-added investors benefits our portfolio companies through a diversity of experiences, perspectives, and relationships. NCP provides several financing options for quality growth companies in our core industries:

  • Expansion Capital
    Our chief investment activity is helping growth companies expand their operations through capital infusion. These companies typically have products or services already in the market; we do not invest in pre-revenue, early-stage or development-stage companies. Our expertise and experience are better suited for companies with enough revenues to indicate a certain level of business maturity.
  • Management Buyouts
    We provide equity to assist management teams in acquiring the businesses they operate, whether they are public, privately held, or divisions of larger corporations.
  • Restructurings and Recapitalizations
    Equity from NCP can also help owners of private and smaller capitalization companies achieve liquidity in their holdings, often as part of a larger infusion of growth capital. We can also provide equity capital to public companies as part of a recapitalization or restructuring.

Focusing primarily on U.S.-based companies, initial investments by NCP typically range from $2 million to $10 million. We are proud of our long history of continually supporting portfolio companies through additional rounds of financing, although like all institutional investors, we eventually look to achieve liquidity. Our preferred exit strategy normally involves an initial public offering, although mergers are increasingly becoming an alternative route to liquidity.

NCP believes having senior business people on the board of directors is critical to the long-term success of our portfolio companies. While we typically do not place anyone from NCP on the board, we often do so with our Limited Partners. As directors, these Limited Partners bring invaluable business experience to the executive management team, unlike directors with only financial backgrounds. NCP Limited Partners have spent time in the trenches building real businesses, suffering setbacks and enjoying successes along the way. If needed, NCP will work with our portfolio companies to attract outside directors who will add real value to their business.

Investment Strategy