INVESTMENT STRATEGY

Our approach provides a dedicated three person team to every investment. At Cognitive, we identify opportunities in the lower middle-market to create value by guiding companies through a process of development and maturation, creating a legacy and lasting value for current and future stakeholders.

Our Strategy

Cognitive seeks to achieve superior returns for its investors through collaboration with management and alignment of significant equity participation by existing management in successful, established businesses. We employ an investment strategy that focuses on the quality of the company and the industry, the growth prospects of both, and the management team in place. Our strategy of investing our time managing a fewer number of high-quality investments allows us to dedicate more time and attention to the unique needs and opportunities of each business, developing a cohesive strategic plan with management by focusing on and dedicating resources to those areas identified as offering the greatest growth opportunities and return on investment.

Business Profit Growth Large

Our Process

Identify

companies with a proven track record of success operating in the lower middle market, and which have a concentration of human and organizational capital within a relatively small group of leaders, which can be supplemented by leadership development to identify, attain and manage the next phase of growth;

Collaborate

with management to develop a 3-5 year operating plan, broaden the management and support team, and align interests of employees, management and ownership;

Pursue

corporate development, through identification and development of existing product and service offerings, strategic lift-outs and acquisitions; and

Create Value

through diversifying and supplementing human and organizational capital, developing the next generation of organizational leadership, aligning incentives of employees, management and ownership, and institutionalizing enterprise value for stakeholders.

Specific activities vary for each investment, depending upon the strengths and capabilities of the company, and include the following:

Opportunistic Involvement

  • Identification, Closing and Implementation of Acquisitions
  • Capital Raising
  • Relationship Expansion
  • Talent Identification and Procurement
  • Ongoing Resource
  • Innovation Management
  • Financial Analysis
  • Manage Banker and Investor Relationships and Communications
  • Operational Improvement

Periodic Involvement

  • Board of Director Participation
  • Strategic Vision and Planning
  • Identification and Implementation of Structure and Controls
  • Design and Implement Incentives for Common Goals of Employees, Management and Investors