Merchant Banking

Equity participation is an integral part of the Partners’ strategy of providing hands-on, value-added counsel to management teams in assisting to build franchise value over a period of time. We look for companies with between $2 and $30 million of revenues that are poised for rapid growth. We seek to establish partnerships with entrepreneurs and are active both as board members and as strategic advisors throughout the life of the investments.

Investment Approach

Farmington Capital Partners was formed as an integral part of the Partners’ strategy of providing hands-on, value-added counsel to management teams in building franchise value over a period. As we aim to have an alignment of interest with our advisory clients, we often structure our engagements so that we get paid part of our economics in equity and will consider making an equity investment. We often take equity positions as part of our merchant banking approach to a long-term partnership with clients.

We look to become active with companies ranging from early stage to middle market with up to $30 million of revenues poised for rapid growth. We seek to establish partnerships with entrepreneurs and are active both as board members and as strategic advisors throughout the life of the investments.

We currently have a portfolio of about a dozen companies. We invest in the same areas that we serve from an advisory standpoint. We have an interest in areas such as:

specialty insurance underwriting through MGAs and MGUs that can bring added value to customers and to carriers

innovative insurance distribution platforms that use technology tools and vertical market expertise or lines of business expertise to improve the customer experience

risk management SaaS companies which can mitigate losses and reduce frequency and severity of claims

emerging new classes and coverages for insurance products (e.g., cyber)

service providers that can bring innovative technology (e.g., artificial intelligence or predictive analytics) to the insurance ecosystem

service providers that utilize proprietary data to improve outcomes in underwriting, customer experience, claims or risk selection

Our current direct investment size is modest. We are, however, capable of bringing substantially larger amounts of capital to a transaction through our relationships with co-investors, strategic partners and debt providers.