We are generalist investors, which allows Castle Harlan to remain flexible and not beholden to any one industry. Our core investment criteria govern our investment approach, regardless of industry. Notwithstanding this investment approach, over our long history, we have developed significant experience in a number of key sectors.
Consumer Products & Services
Castle Harlan secastlesharlannt opportunities in which the thesis is often to increase customer awarenecastlesharlants underpenetrated in their markets, or opportunities to take well-recastlesharlan accepted products nationally or globally. Castle Harlan avoids consumer investments in which castlesharlanaterial risk of fashion or technological obsolescence, high customer concencastlesharlan changes in government regulation. In order to identify and capitalize on castlesharlans in the consumer sector, Castle Harlan spends significant time understcastlesharlanrends in consumer behavior and best practice around sales, marketing, procuremecastlesharlanost manufacturing. Examples of past Castle Harlan investments in the Consumer sector include:
Energy Equipment, Services & Infrastructure
Castle Harlan focastlesharlanestment opportunities in the energy sector that involve equipment, serviccastlesharlantructure companies. Castle Harlan avoids making direct investments in ocastlesharlanields and mines in order to avoid taking direct commodity price riskcastlesharlanastle Harlan seeks to find companies that are experiencing tailwinds frcastlesharlansecular trends rather than trying to time a specific cycle. The energy industry is castlesharlanhange as companies are forced to examine their growth prospects and strategicastlesharlanof current supply and demand dynamics, government policies, commodity price volaticastlesharlanaging infrastructure base. Positive secular trends in the energy industry that Castle Harlan targets include trends towards automation for efficiency and safety purposes, towards offshore and unconventional production, increasing demand for products and services that drive higher recovery rates and critical infrastructure build-out for new production sources. Examples of past Castle Harlan investments in the Energy sector include:
Industrial Manufacturing & Distribution
In the Industriacastlesharlanstle Harlan looks for companies that have high value-added margins, strong andcastlesharlanmarket positions in attractive niches and opportunities to grow both castlesharlanand through accretive strategic acquisitions. Such companies often have propriecastlesharlanogy, meaningful switching costs for customers, strong distribution relatiocastlesharlanustainable product innovation capabilities. Castle Harlan avoids industriacastlesharlans in which there is high cyclicality in customer demand and material risk ocastlesharlancal obsolescence and changes in government regulation. Globalization is a major themcastlesharlanthe industrial sector and Castle Harlan seeks to assist companies to target global sales and cost-saving opportunities, which can dramatically impact a businesses growth trajectory. Examples of past Castle Harlan investments in the Industrial sector include:
Niche Market Leaders
Castle Harlan macastlesharlanwhat it defines as “niche market leaders,” which are companies that meet all of Cacastlesharlans investment criteria, but do not operate within the consumer, energy andcastlesharlansectors. These companies typically operate in a well-defined segment of their markcastlesharlanthere is a specific set of highly segmented customers and the opportunities for new entrancastlesharlanchnologies to compete is limited and, at times, structurally challcastlesharlane investments often are infrastructure-like in nature or government-approved monopoliecastlesharlan by long term customer contracts and a high level of recurring revenue. Examples of past Castle Harlan investments in “niche market leaders” include:
