Strategy & Process
We believe that returns are increasingly driven by the execution of a strategic plan thoughtfully developed in conjunction with our management team. Each plan is focused on creating value through the implementation of operational improvements and the employment of specific growth strategies.
Investment Strategy
Rock Creek Capital Partners seeks to partner with each management team to develop and to execute on a long-term strategic plan. We invest with experienced management teams that have successful track records and give them the independence to run the business. We seek to contribute to the success and growth of the company through active participation, leveraging our skills, experience, and contacts to contribute to the execution of the company's strategic plan.
In order to align our investment interests, we encourage senior management teams to maintain, purchase, or earn a substantial equity interest in connection with our investment. We also typically implement an incentive-based compensation plan to allow senior management and other key employees to earn equity ownership and other compensation.
Rock Creek Capital Partners believes in creating open, two-way relationships that can drive shareholder value for our portfolio companies and our management partners. We look to our partners in management to help us source and evaluate investment opportunities that can drive shareholder value. Our objective is to be a true partner and trusted resource for management, as opposed to merely an investor.
We seek to structure boards that can provide management with the strategic guidance integral to the successful growth of the company. Rock Creek Capital Partners prefers to structure a board that can offer significant industry insight and a wealth of operating experience. We may also establish an advisory board to further allow for the participation of third-party directors.
Rock Creek Capital Partners looks to build strong, long-term relationships with all of the managers and entrepreneurs with whom we come in contact. We try to be a valuable partner and resource to current and prospective portfolio companies and also intermediaries throughout the lifecycle of the business. We seek to be responsive to every inquiry we receive and try to add value and offer our candid and constructive feedback, even if we are unable to pursue a transaction together. It is our goal to work to be the best partner possible.
Investment Process
The process and timeframe described below may vary depending on a specific investment situation. In cases where an investment opportunity is well developed and a quick response is required, we may undertake an accelerated investment process.
Confidentiality Agreement
Upon learning of the opportunity and being given preliminary information we will execute a Confidentiality Agreement outlining our responsibilities regarding the treatment of confidential information.
Preliminary Information Review
Upon receipt of the preliminary information we will review it and determine if it fits our investment strategy and if the opportunity meets our investment criteria. This step in the process usually takes 3-5 days depending on the amount and quality of information provided.
Introductory Meeting
If the business plan or offering memorandum meets our criteria, we will arrange an introductory meeting, at which time the prospective management team will present its business opportunity. After the introductory meeting, we will begin initial inquiries, and if those prove favorable discussions with management on the key determinants of near and long-term success will proceed over the next 2-3 weeks.
Letter of Intent
At this juncture, Rock Creek Capital Partners will submit a preliminary letter of intent outlining the business terms of the proposed transaction for management’s review.
Due Diligence
During due diligence we will perform or have our agents perform legal, accounting and business due diligence. This stage of the process typically takes 30 to 45 days.
Documentation and Closing
Upon successful conclusion of the due diligence process we will draft documents reflecting the business deal that we have agreed to and schedule closing and funding of the transaction. This typically takes 2-3 weeks.