Auxo Investment Partners in Grand Rapids, Mich., offers private equity investments for the long term, which sets them apart from other private equity investors, according to the founding partners.
The firm was launched earlier this month to fill what the partners see as a gap in the private equity market.
Jeff Helminski, one of the firm's three founding partners, says investors want more transparency in their investments, and those seeking capital want long-term investments.
Initially, Auxo says it wants to raise $50 million in capital, which it will invest in 10 to 15 companies over the next five years. Investors will be investing in Auxo as well as in the companies it provides capital for.
Most private equity firms want to turn over their investments in three to five years. Auxo will provide capital for longer terms or with no limit on the amount of time, which Helminski says sets it apart from other private equity firms.
Auxo has a flexible capital model that allows for long-term, growth-oriented decision making without artificial deadlines, says Helminski. The firm will not set predetermined timeframes for its investments. For certain businesses, the firm will take a perpetual approach, with no timeframe at all for a sale or other event, as it builds a portfolio of long-term holdings.
At the same time, it is looking for specific types of businesses to invest in: those that take environmental, social and governance issues into consideration.
“We consider what our stewardship means for the community because we have a broader responsibility to society” than just helping businesses succeed, he says. Auxo will target businesses in the industrial sector, as well as some business-to-business companies and distribution firms.
In addition to Helminski, the firm was founded by managing partners Jack Kolodny and Fred Tedori. Helminski and Kolodny previously worked together as managing directors at Blackford Capital, another private equity firm based in Grand Rapids. There they collaborated on investments with Tedori, who has founded three industrial firms and two financial services companies.
Auxo is looking for investment analysts to help fill out its team, Helminski says.