This week we continue our conversation with Robert Gefaell, co-founder and partner, Plexus Capital. Plexus focuses on subordinated debt investments in middle market companies, with a total of $550 million under management across three funds. Second of two parts – View part one.

The Lead Left: That’s pretty typical of smaller companies.

Robert Gefaell: You bet – most owners are looking for help in strengthening their balance sheet and their management depth in a growth scenario, while others are seeking to begin the succession planning process with the end goal of liquidity. We can help them in all these scenarios.

TLL: What kind of industries do you favor? Or not.

RG: We’re agnostic. We like businesses we can understand – business services, light manufacturing, healthcare, distribution, etc. We are precluded from investing in real estate, re-lenders of capital, and project based financings per the SBA regulations – although it is rare we encounter businesses operating in these industries.