Industry First

Industry First is the proprietary, research-based process through which the Falfurrias team identifies attractive growth markets and partners with talented industry executives to build growth businesses.

Industry First starts with the development of a thesis identifying growth markets with durable trends and in which incremental value creation may be created through Falfurrias resources. In most cases, a senior executive with a proven industry track record is retained to assist in developing this thesis and identifying investment opportunities.

Once completed, Falfurrias publishes its thesis to investment bankers, service providers, and target businesses in an effort to identify targets that will benefit from the distinctive advantages delivered through a Falfurrias partnership.

When a matching opportunity arises, the Industry First thesis becomes a significant part of due diligence and an integral component in the company's strategic planning and tactical execution during the Falfurrias investment period.

Technology-Enabled Services for Financial Institutions
  • Working alongside Susan Faulkner, Falfurrias recognized the growing need for technology tools that could identify and enable additional revenue opportunities for financial institutions (FIs), and in particular, incremental revenue opportunities for small and medium size banks and credit unions that lacked the resources to build such tools in-house.
  • Falfurrias Capital and Ms. Faulkner identified Marquis as a platform investment opportunity that provided software and services to FIs enabling actionable intelligence that can drive revenue growth.
  • In September, 2016, Falfurrias announced a majority investment stake in Marquis and Ms. Faulkner joined the company as CEO of the business.
Susan Faulkner

Susan Faulkner has over 30 years experience in the financial services industry and expertise across bank strategy and operations as a former executive with Bank of America. Ms. Faulkner led FCP's tech-enabled services for financial institutions industry first campaign and was immediately appointed CEO of Marquis Software Solutions upon the firm's investment in the business in September, 2016.

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Financial Institution Compliance Services And Technology
  • With Mr. Price, Falfurrias researched the growing regulatory compliance demands and the ways in which financial institutions are turning to technology and service providers to efficiently manage these processes and costs
  • RegEd is a provider of regulatory compliance software and services for financial institutions, including many of the largest, multi-national broker-dealers and insurance companies. RegEd's suite of compliance technology and solutions allow institutions to efficiently and cost effectively manage the growing number of regulations impacting their operations.
  • In July 2015, Falfurrias announced a majority investment in RegEd.
Joe Price

Joe Price is Falfurrias' retained executive for the Financial Institution Compliance Services and Technology Industry Campaign. Mr. Price has spent his entire career in financial services including several executive positions at Bank of America. Mr. Price is an active member of all deal teams when reviewing deals in this sector, as well as proactively identifying new investment opportunities.

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Transmission & Distribution Infrastructure
  • Alongside Mr. Pacyna, Falfurrias uncovered numerous trends - including the aging of our nation's electric power infrastructure - which are driving sustained investments in T&D hardware by electric power utilities
  • NATDG is a holding company formed to meet the growing demand for highly engineered T&D components and capture additional share by combining complementary T&D businesses, leveraging engineering capabilities, and investing in sales resources
  • NATDG acquired ITEC, an OEM of instrument transformer products, in March of 2013
  • Advanced Control Systems, a provider of grid automation software and hardware, was later acquired in February of 2014
Dave Pacyna

Mr. Pacyna formerly led Siemens' North American T&D Group, growing it organically and by acquisition from $200 million to more than $2 billion in annual revenue. He led FCP's T&D infrastructure campaign and was appointed CEO of NATDG upon our initial campaign investment in 2013.

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Other Representative Campaigns

Advanced Manufacturing and Industrial Automation

After decades of outsourcing manufacturing to low-cost labor countries, domestic manufacturers are beginning to ramp up investments in U.S. manufacturing operations by both "re-shoring" work that was once offshored and building new manufacturing capacity in the U.S. As domestic production growth returns to the U.S. market, manufacturers are expected to make substantial investments in industrial automation technologies that reduce labor costs and improve safety and quality. Falfurrias has partnered with Ken Walker, the former Chief Operating Officer of EnPro Industries (NYSE:NPO), to build a diversified provider of automation technology or systems integration services through acquisition, investments in technology, and organic growth that is targeted at less cyclical end markets.

Visitor and Vendor Management Platform

Companies and institutions across virtually all end markets increasingly need to pre-qualify, screen and monitor incoming populations driven by regulatory pressure, safety concerns or cost efficiencies. Furthermore, as the U.S. economy increases its reliance on contingent workforces, companies will need to address a growing population that is currently under-monitored but requires the same screening processes as employees. We believe there is an attractive opportunity amid a fragmented universe of vertically-focused vendors today to build a multi-vertical visitor and vendor management platform. We believe the benefits of such a platform would include increased scale, diversification, greater "network effect" among visitors & vendors, and a wealth of data that could lead to value beyond existing service offerings.

Pet Services

The U.S. pet industry is the seventh largest retail industry in the U.S. that has grown 5% since 2006. The industry continues to exhibit macro tailwinds as pet ownership continues to grow and owners increasingly "humanize" their pets and treat pet product and service spending as nondiscretionary. Falfurrias believes there are significant opportunities for veterinarian outsourced services with an emphasis on financial services – pet insurance, wellness plans and alternative consumer finance plans.

Hard Skills Training and Education

Corporations and consumers are increasingly turning to online providers to meet their education and training objectives, especially in markets that are driven by regulations or government oversight. Falfurrias has identified the potential to build a diversified provider of e-learning solutions for regulatory-driven end markets that could accelerate growth through acquisition, investments in technology, and leveraging sales & marketing infrastructure. In 2014, we acquired American Safety Council, an e-learning provider for driver safety and workplace safety.

Vertically Focused Marketing Services

The sales & marketing process in some industries necessitates a more specialized capability than many traditional marketing agencies can provide. Falfurrias researched industry verticals where the sales process involved unique market attributes that require targeted market knowledge, experience, and technology. In June of 2015, Falfurrias acquired GlynnDevins, a firm that provides technology-enabled marketing solutions for the senior living space.

Specialty Food Retail

The U.S. Hispanic and Asian populations are growing significantly faster than the general U.S. population. These consumers are loyal to familiar brands and authentic products that are a part of their cultural cuisines, yet many of these products are not available in traditional U.S. supermarkets. Falfurrias believes we could invest in technology and people to better capitalize on favorable demographics, leverage common supply chain across ethnic lines, and present a liquidity option to owner/operators.

Healthcare Revenue Cycle Management (Past Campaign)

The healthcare industry in the US has undergone significant transformation as a result of changing regulations with the Affordable Care Act. This includes a transitioning coding system and increasing pressures to improve patient services while simultaneously lowering costs. In general, healthcare providers are not well-equipped to manage their revenue cycles internally, and they have experienced lower rates of collection and further expense pressures accordingly. Such market dynamics are leading to increased utilization of outsourced RCM providers to improve cash flow, increase productivity / efficiency, and ensure accurate reimbursement through a higher degree of specialization and expertise.

Natural and Organic Foods / Locally Sourced Supply Chain (Past Campaign)

More than ever, consumers are interested in healthier, natural food products that complement active lifestyles. Falfurrias has researched the supply chain for natural, organic, and local foods to understand how it differs from the supply chain for conventional foods. In an industry where scale matters, Falfurrias believes there are significant opportunities to leverage conventional food platforms to deliver affordable, convenient, healthier food products.

Healthy, Fast Casual Restaurants (Past Campaign)

FCP believes that there is a growing demand for fast casual restaurants serving consumers wanting healthier (both real or perceived) products. Consumer preferences are changing in favor of healthy food, eating out, and dining quickly. Such market dynamics make opportunities in the space attractive on their own, and combined with the firm's Bojangles' experience, Falfurrias believes it can to add value to healthy, convenient restaurants.

Multi-Concept Franchise Home Services and Home Care (Past Campaign)

FCP believes an opportunity exists to build and grow a diversified multi-concept franchise in the home health and home care space. A full continuum of care offers skilled patients ability to progress into unskilled or move into hospice with the ease of one provider while capturing the full revenue stream. In addition, increasing complexity of regulations allows franchise platforms of scale to truly differentiate themselves by offering value-added resources to franchisees and through superior execution.

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