Charterhouse commenced operations in 1973 as the U.S. Investment arm of the U.K.-based Charterhouse Bank. In the mid-1980’s, Charterhouse became an independent entity, investing capital on behalf of a variety of investors, including public and private sector pension funds, insurance companies, high-net worth families and other investment partnerships that looked to Charterhouse to generate attractive investment returns.
As an early middle-market investor, with a focus on build-ups, management buyouts, and growth capital investments, Charterhouse’s consistent mission was to partner with outstanding, entrepreneurial executives to build leading middle-market companies in North America. The strategy was not dependent upon the significant use of leverage or multiple expansion; it employed operational execution and value creation initiatives. This approach enabled our portfolio companies to prosper even during some of the most volatile economic periods.
Charterhouse primarily invested in the business services and healthcare services sectors, which as a result of being fragmented sectors, lended themselves well to buildup strategies. Working in partnership with management, Charterhouse leveraged its investment acumen in acquiring add-on acquisitions, its specific-industry knowledge and its network of value-added professionals and entrepreneurial resources to help businesses grow and achieve their full potential. We prided ourselves on being a value-added partner to those executives with whom we partnered. The trust and mutual respect that was developed throughout the investment cycle led many of our management teams to work with us on multiple occasions. In fact, more than half of our over 100 platform company investments included a member of a management team with whom we had previously worked.
While each of Charterhouse’s investment funds over its 40-plus year existence had provided investors with positive returns, including the most recent fund, Charterhouse Equity Partners IV, which generated a gross return of over two times invested capital, the firm has discontinued managing institutional investment partnerships and has evolved its business model to focus on one-off strategic investments funded by its principals. See below for contact information.