Investment Overview

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Investment Strategy

LKCM Headwater Investments demonstrates a clear, hands-on, value-creation strategy with each portfolio company that leverages our expertise, experience and network of relationships in order to help establish market-leading businesses.
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    Partner with Winning Management TeamsWe believe that leadership is the driver of success for every investment; therefore, we look to partner with teams and leaders with demonstrated success in their respective industries.  Our management partners also have access to our broad relationship network and stable of operating partners, who serve our portfolio companies as directors, strategic advisors and mentors.  We also align a management teams’ interests with those of our investors to emphasize the concept of shared success.
  • Invest Where We Can Add Value.  Our preference is to invest in companies and industries where we can identify opportunities to enhance a company's return profile through operational improvements.  As a general rule, we try to avoid investment opportunities too dependent upon financial leverage in order to gain attractive investor returns.
  • Prudently Pursue Strategic GrowthWe desire to grow our companies through a variety of avenues but seek to do this within the context of maintaining strategic direction.
    • Product Extension – Further penetrate existing customer relationships through additions of relevant products.
    • Market Expansion – Leverage core competencies and institutional knowledge to win new customers in adjacent or otherwise related markets.
    • Acquisition – Acquire complementary niche businesses to help our companies attain critical mass or identify and fill gaps in their product offering or geographic coverage.
  • Capture Benefits of Scope and Scale.  We choose to focus on businesses with opportunities to benefit meaningfully from scope and scale expansion.  Whether this growth is organic or acquisition-driven, we always strive to improve working capital efficiency, leverage cross-selling opportunities and optimize procurement and pricing.