Today we are joined by the Vice President of Townsend Street Capital, Charles Zalud, to talk about the opportunities of lower middle market investment and how his company is making the most of these in the current climate. In this punchy interview, Charles gives us some great insight into the way Townsend works, and what differentiates them from their competitors, highlighting their pool of human resources and active philosophy to longer-term hold periods. We also get into some important definitions, with our guest clarifying exactly what is meant by 'lower middle market' and 'committed capital' in the context of his business. We cover the changes we have seen through the last year, and some of the surprising stability that has been present despite the pandemic, before going on to cover ideal partners and investments from Townsend's perspective. Our guest also shares their idea of sticking to the industries and sectors they know best, and drilling down with expertise and experience for the greatest returns. So for all this and a whole lot more, be sure to join us.

Key Points From This Episode:

• Charles' professional background, investment experience, and how he joined Townsend Street Capital. 
• Impacts of the pandemic on investment opportunities; what Charles has noticed. 
• Unpacking exactly what is meant by the term 'lower middle market'. 
• How Townsend's focus on the middle market segment allows them to be more selective with their investments.
• Imbalances of supply and demand in the middle market that enhance Townsend's ability to make good purchases.
• Why Charles positions himself and the company on the side of active investment.
• Thoughts on ideal investments from Charles; partnering, seller profiles, and equity.
• The long-term investment approach that Townsend favors and their average hold periods. 
• Townsend's focus on specific sectors and industries in which they are experienced.
• Charles' definition of 'committed capital' and the pros and cons of this model for investment. 
• The human resources at Townsend's disposal while approaching the lower middle market. 

Links Mentioned in Today’s Episode:

Charles Zalud on LinkedIn

Townsend Street Capital

SI Capital

Jennifer Merchant 

PitchBoard