Building Over Buying: SecurCapital's Holistic Investment Approach

The logistics industry, a dynamic and rapidly evolving sector, has captured the attention of venture capital (VC) and private equity (PE) firms worldwide. In this article, we will delve into the distinct approaches of VC and PE investments in logistics and highlight SecurCapital's unique strategy that emphasizes not just on financial metrics, but also on culture, people, veteran ownership for how long, historical customer base, mission, and vision in our investment choices.

VC vs. PE Investment Styles

VCs have been pivotal in infusing capital into logistics, with a keen focus on emerging technologies and supply chain solutions. VC or Angel Investors typically invest in high-growth companies with advanced technologies in the supply chain. They are often “early and speculative, taking a shot at emerging technology and niche market sectors,” says Steve Russell, CEO, SecurCapital. The early engagement garners large blocks of preferred shares and, normally, Board representation.

Contrastingly, PE firms seek opportunities in inefficiencies and underutilization within the logistics industry. Their investments often aim to boost operational efficiency and profitability, especially in mid-market companies with the potential for higher EBITDA multiples and lower risk profiles. They swiftly implement synergies and downsizing to drive margin improvements. The engagement involves extensive due diligence, Board representation, equity, debt facilities and leans on accounts.

SecurCapital's Visionary 'Build Over Buy' Strategy

At SecurCapital, our approach builds upon the foundational focus on assets and EBITDA. As we identify M&A targets, we also prioritize companies that align with our core values of culture, veteran employees, private owners, and a solid legacy customer base. This strategy is key to providing a win-win environment for both organizations with minimal disruption to the organizational culture.

We believe that the true value of a company lies in its people and culture. Our investment decisions are guided by how well a company's culture aligns with our values and its potential to contribute positively to our roll-up model. We seek to partner with businesses that have proven profitability and clear mission and those that are committed to their teams and communities, which align with our foundation activities.

Building companies from scratch poses unique challenges, including the need for significant capital and a longer timeframe for returns. At SecurCapital, we tackle these challenges with a strategic multimodal approach, focused on organic expansion and niche high-yielding markets like cross-border, pharma, aviation, cold chain, light manufacturing, and e-fulfillment leveraging our industry expertise and a vast network to create a manageable balance of risk and reward.

SecurCapital's 'build over buy' philosophy reflects our dedication to not just financial success, but also to nurturing a positive and innovative culture in the logistics sector. We are committed to shaping the future of logistics through sustainable and people-centric investments.

If you are interested in learning more about our investment strategies or exploring opportunities to invest with us, we invite you to reach out.