The Next Street focus: underserved small businesses

Next Street focuses on businesses and markets that have been poorly served by traditional sources of capital and that offer attractive opportunities due in part to their location, size and demographic trends.

Next Street selects high-performing companies with a strong desire to grow. We look for small businesses with revenues between $1 million and $100 million, with a ‘sweet spot’ of revenues from $5 million to $25 million. The average operating history is 15 years.

Next Street companies also have one or more of these characteristics:

Operations in urban communities,
with an emphasis on

Proprietary deal flow is a core element of the Next Street strategy.

• Growth companies creating jobs in inner city communities
• Minority-owned and women-owned businesses
• Attractive levels of profitability, liquidity and debt service

A need for sophisticated financial and strategic advice

• An opportunity to significantly increase value, sell, or acquire within five years
• A consistent track record of profitability and moderate growth
• Low growth and break-even economics
• Ownership structure challenges, such as succession or equity liquidation

Historically underserved by traditional financial services providers

• Currently banked but unsatisfied with banking services when they attempt to secure growth capital
• Lacking access to financial services because of provider bias
• Inexperience with tapping sophisticated financial and strategic advice