Our Approach

We explore hundreds of prospective businesses each year. Every opportunity is unique, so we customize our approach and process to fit the needs of that potential partnership.

Our Approach

We explore hundreds of prospective businesses each year. Every opportunity is unique, so we customize our approach and process to fit the needs of that potential partnership.

Our priority always remains on finding the best fit even if that means we only invest in one or two new platform companies each year.

“Stenning actually has an informal group that acts as an advisory board at the Evolution company level. For him, it becomes an accountability and thought partner. This is a bit of a paradox because of all the independent sponsors out there, Stenning needs the least amount of advice. He is very accomplished, very experienced, but nonetheless, he is the one out there advocating the use of an advisory board.”

Niklas James, Managing Partner, Minds Capital

“Stenning highlights one of the best attributes of the independent sponsor model and that is the ability to be very patient. There is no pressure to deploy capital so they can be more patient and wait for a more favorable valuation which they have done again and again. This is why the portfolio has been so successful. It is a winning strategy”

Max Lummis, Founder & Owner, Minds Capital

“Stenning likes independent sponsorship because it allows alignment between him and his LPs. He has a lot of skin in the game, and my overall takeaway is how engaged he is. He is very dynamic and also very communicative with his LPs and is active with his PortCos financially. You come away with a sense of a passionate independent sponsor. He is very invested in every way. He left quite the impression.”

Will Smith, Founder, Minds Capital

Evolution would like to thank Minds Capital for this opportunity to share its leadership’s perspectives and insights.

01

Our Pre-Transaction Process

After identifying businesses that share the same energy, interest, and values as Evolution, we move forward to not only learn more about the business, but the people who run and manage the company. People are always our greatest investment, so we look to forge a relationship early and foster that partnership even before the closing.

We value leadership at the local level and will play our part to make sure it is effectively maintained or supplemented to ensure the
exiting seller’s legacy or, possibly, strengthen the existing team as needed. A business can expect honesty, transparency, and clear communication every step of the way.

“It does not matter how much investment potential one has or how big the vision is that leads to success. It ultimately comes down to execution, and Stenning’s leadership and experience are what make this happen and catapult business to sustainable growth.”

John Morgan, former investment colleague, current 3S Home COO

01

Our Pre-Transaction Process

After identifying businesses that share the same energy, interest, and values as Evolution, we move forward to not only learn more about the business, but the people who run and manage the company. People are always our greatest investment, so we look to forge a relationship early and foster that partnership even before the closing.

We value leadership at the local level and will play our part to make sure it is effectively maintained or supplemented to ensure the
exiting seller’s legacy or, possibly, strengthen the existing team as needed. A business can expect honesty, transparency, and clear communication every step of the way.

“It does not matter how much investment potential one has or how big the vision is that leads to success. It ultimately comes down to execution, and Stenning’s leadership and experience are what make this happen and catapult business to sustainable growth.”

John Morgan, former investment colleague, current 3S Home COO

02

Our Post Transaction Relationship

Typically, when a private equity company buys a business, their involvement is generally limited to quarterly Board meetings, infrequent or inconsistent support, and pounding the table to demand economic results defined by profit growth.

Once the Evolution team closes the initial transaction, we stay involved and engaged. Our team remains accessible – whenever needed but at least weekly on a formal meeting basis – with resources and knowledge while empowering management to drive the business forward. We overcome challenges as a team and equally celebrate the wins.

We do not look to micro-manage as we trust the management team in place with their expertise and dedication: we trust the company leadership knows their business. In the event part of the management team retires as part of the planned transaction (founder, family-owned or even corporate carve-out), Evolution taps into its vast network of professionals to find the best fit for the team and the business.

“I have worked with Stenning on a number of successful transactions and can say he is a man of his word. He delivered on what he promised and communicated directly, honestly, and consistently to get the deal done. Evolution has lived up to all that post-closing as well.”

Chris Heckert, Managing Director, Generational Equity (Banker for Allied Underground)

03

Our Ongoing Commitment

To demonstrate our commitment to the businesses, Evolution’s partners put significant liquidity into each company, so success is intertwined together. Taking a 2% fee and writing a 1% check is not alignment: Evolution generally represents 20% or more of the equity invested in each deal. Unlike traditional private equity firms that rely on arbitrary asset management fee structures, we are always the largest personal investors behind our portfolio companies.

We believe in our companies and put our “back pocket” money to work with them. In this manner Evolution remains properly aligned with our investors, our management teams, and even our credit partners.

Learn about the businesses we are proud to call partners