Rainbow Capital, LLC is a private equity investment firm which focuses on “control investments” in pre-middle market and smaller middle market companies. We are a “fundless” or “independent” sponsor and, as such, raise capital on a transaction by transaction basis from our own resources and those of individuals and institutions closely tied to the firm. Working in conjunction with existing management, Rainbow Capital provides liquidity and growth capital to shareholders and companies respectively, through acquisitions and leveraged recapitalizations. Our target companies have a strong, defensible niche, reliable cash flow, predictable capital expenditures and present opportunities for significant growth.
In addition to identifying attractive business opportunities, Rainbow Capital seeks outstanding management teams to partner with in achieving financial and operating goals. Thus, transactions are structured with operating management owning a significant portion of the portfolio company. Rainbow Capital adds value to management through active oversight and board representation and provides strategic assistance when and where appropriate.
Our principals possess a variety of financial, operating and transactional skills that are complimentary to any operating management team. As private equity professionals, we avoid involvement in day-to-day operations except as when needed. However, we help develop a focused strategic plan, identify possible add-on acquisitions and growth initiatives and provide prudent financial management.