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Investment Criteria

Cultivate invests in People-focused companies and real estate

Operating Companies

Cultivate invests in growth and transition​

Growth

Business owners who see their business as a tool to serve people and they want to stay on and grow it to the next level.

Transition

Business owners who see their business as a tool to serve others, and who want to see this legacy of serving continue even after they are gone.

Image by Scott Blake
Industries:

Because we have a narrow focus as to the types of owners and organizations we want to work with, we take a broad approach to the types of industries in which we invest.  We really like SIMPLE to explain businesses.  If it takes longer than a couple of sentences to explain how the business makes money, it is probably not for us.  We use the rule of thumb that we must be able to easily explain the business to a twelve year old.  We lean toward industries where we are comfortable and where we speak the language.  However, we have a wide network of advisors we lean on to help us understand industries. 

Deal Size:

Our sweet spot is between $2MM and $5MM in EBITDA.  We will adjust a little higher or lower for the right opportunity.

Right Fit:

We seek to invest in businesses that have been enduringly profitable for a long period of time and have long term employees who want to stay.  We originally thought that we would only invest if the owner was uniquely employee-focused; however, we believe that bringing employee-focused changes to a company that has not been such can give an immediate morale boost to employees.  

Real Estate

From here for here

We believe we are different from other real estate investors because we are local and we care about how our community is being developed.  Cultivate provides a vehicle for Aledo residents to invest in their own community, so that their returns are more than just financial in nature.   Their returns impact them daily where they live.

We collaborate with other communities who have established local investment vehicles.  They have seen preference given to them by local owners who want to see their property developed in a way that benefits the community.  We are expecting to see these types of opportunities as Aledo continues to grow.​​

Aledo Valley Focus

Cultivate prefers to invest in Real Estate within the Aledo Valley that fits with its overall redemptive mission:

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  • Living

  • Gathering

  • Recreating

  • Cultivating local business​

Prefered Characteristics

We invest in a mix of development deals as well as ongoing income producing properties:

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  • Development deals 

    • 20+% IRR

    • 3-5 year horizon

    • Makes the surrounding area better for living, gathering, or recreating for years to come

 

  • Ongoing income production

    • 10 cap once in production

    • 10 year+ hold

    • Within Aledo Valley or Owner occupied space for a portfolio company

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