Sentry’s portfolio company investments are structured as a combination of equity and subordinated debt. This structure meets the capital needs of the company and addresses certain tax issues of Sentry.
The magnitude of Sentry’s capital investments typically ranges from $500,000 to $5 million, although higher or lower amounts may be invested depending on the specific facts.
Investment Term; Exit Strategy
Sentry’s philosophy with respect to its exit strategy for its portfolio company investments is simple: focus on continuously improving the operations of the company and opportunities will present themselves. Because Sentry is a private company, it is under no compulsion to liquidate an investment within any particular time frame. However, the exit horizon is generally between three and seven years. In addition, Sentry’s equity and subordinated debt structure creates a partially self-liquidating investment.
Depending on the objectives of the overall owner group, liquidation opportunities include:
acquisition by a strategic purchaser or by a financial investor,
taking the company public, or
retaining ownership and simply receiving cash distributions.
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Private Equity