“Market Seams” where there are dislocations,
mis-pricings, and inflection points in value
Leverage the firm’s network to find actionable
opportunities within these identified “Market Seams”
Further mitigate downside risks and drive
consistent returns through investment structure
Businesses in partnership with founders,
family owners and management
Virgo seeks to identify less efficient market segments and areas of corporate change (or “market seams”) across market and business cycles. Virgo leverages macro-economic and industry viewpoints to identify these seams.
Virgo’s market seams approach to investing underpins focused, thematic idea generation and proactive sourcing in the firm’s core industries.
This approach best positions Virgo to generate attractive returns in both up and down markets as well as returns that are less correlated with market credit spreads and/or corporate valuation multiples.
Commercial aircraft and engine
trading and leasing platform
Virgo approaches investment opportunities with a contrarian disposition and a focus on innovation.
Virgo has built an organization with an ability to understand complex situations, storied industries or companies, and corporate events that create an inflection point in asset value.
Energy specialty finance company
Private financings for clean energy
upgrades and property maintenance
needs for residential and
A flexible mandate and creative transaction structuring skills allow Virgo to create unique opportunities out of identified market seams.
Virgo seeks to enhance principal protection and drive more consistent return outcomes through investment structuring and portfolio construction.
A premier private equity firm that
seeds real estate investment
managers and developers
Virgo is looking for situations where there is an identified inflection point in value. Virgo seeks to build value beyond the purchase price of acquired investments in partnership with founder entrepreneurs and/or existing management.
The Virgo model emphasizes the combination of ideas and human capital.
Boutique music publishing company
Media platform in music publishing focused on
catalog acquisitions and artist financings
We are an “imagineer” at Virgo. We are an investment idea generator and an allocator of capital in the businesses that we own.
We seek to partner with founders and great operators both as a credit and structured equity investor.
People are the key to executing our ideas – to invention and reinvention in the businesses that we own. We seek to build value beyond the purchase price of an acquired asset in partnership with great operators.
From day one, we built our business with the core skills of understanding people and supporting our management team partners in executing their vision. Our partners, Gary Krauthamer and Todd Dorfman, lead this capability for Virgo. (see Gary and Todd case studies)
During this process we have met with many accomplished firms, a significant number of whom offered possible solutions. After careful study and analysis and extensive interaction, LCA came to the conclusion that Virgo, with its creative capacities, financial strength, and extensive connections, was the answer...
“Following years of successful growth, our Company is at an exciting inflection point. The Virgo investment allows Clinipace to further secure our leadership position servicing biotech and pharma clients by adding additional breadth and depth to our operations. With Virgo, we found investors who not only think about innovation like we do, but who also provided a differentiated financing solution that met our unique needs.”
Gary Krauthamer helped us build a tremendous management team. His judgments on people are exceptional.....
During the more than 10 years I was involved in working with Gary I always found him to be highly professional and extremely responsive. His background enables him to understand our various business units and support the needs of the organization in virtually any area. He helped us build the core team that supported the growth of our company and continued to support us post our sale to United...
We have worked with Todd for over 10 years. During that time we have completed multiple acquisitions and a subsequent initial public offering. Todd has been on call to help us identify key additions to our team nationally in order to support our continued growth. We have developed a programmatic and ongoing relationship with him because we trust him to think of our best interests in all matters. It has been and continues to be a very successful partnership.
Todd has been a tremendous partner for over 15 years. I have had the good fortune of working with Todd on all 3 companies that I have started. The firm understands the value of human capital at the highest level. Their integrity is beyond reproach. In addition, Todd’s ability to identity talent that is the best fit for a company is the strongest in the industry.
We have grown exponentially in the past five years. Gary and his team have provided us with solid employees to make that growth and our business success possible.
Virgo works side-by-side with management to seek optimal ways to re-invent the company to achieve organizational goals and initiatives.
In January 2015, Virgo completed an investment in Clinipace Worldwide. The combined debt and structured equity financing will assist Clinipace in capitalizing on a pipeline of corporate acquisitions that deepen its global footprint and expand its therapeutic expertise.
A LEADING GLOBAL, DIGITAL CLINICAL
RESEARCH ORGANIZATION (DCRO).
Growth and Acquisition Capital
We seek to partner with founders, family shareholders and corporate owners to build value beyond the purchase price of acquired assets or companies
People ask us how we are different. We are different because we have different ideas. We are focused on innovation, reinvention and transforming the value parameters of the businesses that we own or lend to
Understanding people and supporting our management team partners is the core of our strategy and firm skill set
A flexible mandate to invest in both credit and equity securities allows us to create differentiated financing solutions for companies and asset owners
Opportunistic credit investments with equity-like target returns
Credit and structured equity transactions that are backed by asset collateral that generates current cash flow
Technical, niche markets with relationship-driven sourcing & analysis
Current cash return, plus capital appreciation potential based on the transformation of value parameters
Non-control and shared-control equity transactions, typically in partnership with family-owned companies or founder entrepreneurs
Current cash return, plus capital appreciation potential as identified event(s) materialize
Virgo has an experienced leadership team with a long and successful history of working together.
Virgo team members have demonstrated the ability to identify and capitalize on dislocations and inefficient market segments across multiple business and market investment cycles.
The key components of the Virgo approach include: (i) idea generation that emerges from a multi-disciplinary understanding of business unit economics, human nature and market behavior; (ii) long standing sourcing relationships; (iii) a process-driven analytical method, and; (iv) an in-house human capital function to enhance value post investment, where possible.
Virgo’s partners believe that the Firm’s culture represents Virgo’s greatest asset and is the most sustainable component of the Firm’s competitive advantage. The Virgo culture is grounded in the combination of individual talent and a dedication to team collaboration. Virgo believes that innovation emerges from an open environment founded on mutual respect and active debate. Virgo operates under a team-based approach that combines varied skill sets and experience bases with collaboration on investment judgments under an ‘advocate-skeptic’ model.
Jesse is the Managing Partner and Chief Investment Officer at Virgo with lead responsibility for the day-to-day operations of Virgo and the Fund, the sourcing and investment process, portfolio construction and investor relationships. Prior to Virgo, Jesse was a senior investment professional at Eton Park Capital Management where he focused on credit, distressed, special situations and asset-based investing. Jesse joined Eton Park through a merger with R6 Capital Management, where he was a co-founder, partner and portfolio manager with responsibilities which included portfolio construction and hedging, management of the investment process and firm strategy.
Prior to joining R6 Capital, Jesse was a senior investment professional at Silver Point Capital. Jesse worked on both the public trading desk and assisted in the build out of the firm’s middle-market, private investment business, where he worked with several Virgo team members. Prior to Silver Point, Jesse was an Associate with Clayton, Dubilier and Rice (CD&R) and an Analyst with Morgan Stanley Capital Partners, the leveraged buyout principal investment division of Morgan Stanley. Jesse earned his BA from the Johns Hopkins University with highest honors, graduating at the top of his class with Phi Beta Kappa distinction. Jesse also studied at the Paul H. Nitze School of Advanced International Studies and was a guest of the Japanese Ministry of Finance in Tokyo for a seminar on fiscal and monetary policy where he published a conference paper on private equity in Japan. Jesse is a member of the Virgo investment committee.
Todd is a Partner at Virgo focused on building an information edge in investment due diligence and evaluating management teams. Todd has been a part of Krauthamer & Associates since 1993 and has been a principal since 1997. Todd has recruited for public and private sector clients throughout a variety of industries including financial and professional services, real estate, technology, manufacturing, distribution and healthcare.
Todd’s prior experience includes several years in real estate finance, development and dispositions, first at LaSalle Partners, a global provider of comprehensive real estate and investment management services, and subsequently at Oxford Realty, a national multi-family real estate developer and asset manager. Todd has been a member of the Northern Virginia Technology Council and is a member of the Turnaround Management Association. Todd graduated with honors from the University of Michigan with a concentration in economics.
Gary is a Partner at Virgo focused on building strategic sourcing relationships and cultivating the Operating Partner Network. Gary founded Krauthamer & Associates in 1971 and has personally completed more than 1,000 search assignments throughout North America, Europe and Asia. Over the last 30 years, Gary has worked extensively within and across the public and private sectors and has developed a diverse client base that includes the aerospace industry, the federal government, entrepreneurial organizations, middle-market entities and large multi-national Fortune 100 corporations.
Gary is a member of various committees of the American Public Transportation Association and serves on the Board of Governors of the Wings Club. He is currently the Chairman of the Omega Institute and is a member of the Social Venture Network. Gary graduated from the American University's Kogod School of Business with a degree in finance.
Chris has over twenty years of experience in the private credit markets and special situations investing. Prior to joining Virgo, Chris was a Co-Head of the Principal Finance Group at Silver Point Capital, where he worked with several Virgo team members. Over a five year period with Silver Point, Chris helped build an investment portfolio of over $3.5 billion and managed over 50 people in five offices across the United States. Chris headed the firm's Originations team and served on the firm’s deal review committee.
Prior to joining Silver Point, Chris spent eight years at Wells Fargo Foothill, where he started their New York office in 1996 and ran originations offices in Chicago and Boston. Prior to Wells Fargo, Chris held various roles over a six year period with the Financial Restructuring Group of CIT Business Credit in New York. Chris earned his BS from Georgetown University in Washington, DC. Chris is a member of the Virgo investment committee.
Mack has over twenty years of experience in the private credit markets and special situations investing. Prior to joining Virgo, Mack was responsible for investment activities ranging from senior debt through equity for the Principal Finance Group at Silver Point Capital, where he worked with several Virgo team members. At Silver Point, Mack led the private-side investing business for the Southeast and Mid-Atlantic regions.
Prior to joining Silver Point, he was a Senior Managing Director at CIT, leading the firm's national Special Situations coverage team. Mack previously worked in Wachovia's Corporate Banking Group, where he originated, underwrote and managed middle-market bank debt and related products. Mack earned his BS in finance from Florida State University and is a former board member of the Atlanta TMA and the Charlotte Association for Corporate Growth. Mack is a member of the Virgo investment committee.
Mark has over ten years of experience in various financial, operational, and regulatory roles within the chemicals, energy/materials and industrial sectors. Prior to joining Virgo, Mark worked in the investment banking division at Goldman Sachs in New York. He was a member of the firm’s Global Natural Resources group with an emphasis on the chemicals and metals & mining sectors. Prior to joining Goldman Sachs, Mark was a Strategic Marketing Manager at ChemPoint, the start-up specialty chemical distribution subsidiary of Univar USA.
Mark also spent three years with the U.S. Environmental Protection Agency as an assistant project manager within the Office of Science and Technology, focused on the pulp and paper industry. Mark earned his BS in chemical engineering from the Johns Hopkins University and received an MBA with finance specialization from New York University’s Leonard N. Stern School of Business, graduating with honors as a Stern Scholar. Mark is a member of the Virgo investment committee.
Prior to joining Virgo, Bob was a Partner and the Chief Operating Officer at Oakwood Financial Technologies, a company focused on the development and marketing of proprietary hedge fund credit management software systems. Prior to Oakwood, Bob spent six years as a Vice President of Operations and Operations Counsel at D.B. Zwirn & Co. Bob was the head of the illiquid investment operations group, managing a team of fifteen operations analysts who handled all loan administration, agency and reporting for the fund’s private credit portfolio. He also managed trade operations processes for select liquid investments.
During his tenure, Bob supervised implementation of various third-party front and back office technologies and advised on the development and implementation of in-house technologies. Bob graduated magna cum laude with a BS in business from the University of Pittsburgh and received a JD from the Dickinson School of Law in Pennsylvania
Eli has over fifteen years of experience in private credit, private equity and distressed debt investing. Prior to joining Virgo, Eli founded Lynbrook Capital Group and completed investments in oil & gas, renewable finance, real estate and industrial businesses. Previously, Eli spent six years at Anchorage Capital Group where he oversaw a global portfolio of investments across all sectors of the energy industry and across the capital structure. Prior to joining Anchorage, Eli was an Analyst at Severn River Capital, an Associate at General Atlantic Partners and an Analyst at Goldman Sachs.
Eli earned his AB degree from Harvard University with honors. Eli also earned an MBA from Harvard Business School with honors. Eli currently serves on the Board of Advocates of Citizens Schools New York. Eli is a member of the Virgo investment committee.
People ask us how we are different at Virgo. We are different because we have unique ideas. The art of investing begins with ideas. We are innovators. We like it when people stop us to tell us we are going the wrong direction. We have always preferred the road not taken or the road less travelled.
We are always looking for the doors that will lead us down the path to a new idea or a relationship that spawns a new insight. We believe that ideas emerge from aggregating thinking across a broader range of disciplines and from approaching the same subjects from multiple angles. A good investor is an “imagineer.”
The interplay between business fundamentals, individual emotions and herding crowds is the crux of value investing. Mindfulness and an awareness of this interaction between companies, people and markets enables Virgo to find mis-priced assets and misunderstood companies. A good investor is an imaginer
We seek to connect great ideas and talented people. Our relationships enable us to express our ideas – to turn ideas into actionable opportunities. People are also the key to executing our ideas – to building value beyond the purchase price of an acquired asset. And, whenever we have been down, it has been our relationships that got us through. Virgo is dedicated to building a societas of authentic partnership relationships, among Virgo team members, with management teams and with our investors.
To be a successful investor, one must be crazy enough to have a different view, but disciplined enough to have that crazy view for good reason.Furthermore, it is the methodical execution of one’s ideas that really matters. At Virgo, we are incredibly curious, but we are also obsessively focused.
We want to build market leaders. We want to reinvent companies that are navigating periods of volatility. We seek to attract people that are looking to be a part of building something meaningful and lasting. Success in business is not clinical. It is all about passion, about focused emotion.
Our overriding objective is excellence and constant improvement. We want to be a leader in everything we do. Money doesn’t bring happiness. The pursuit of excellence does. We take great pleasure in the craft of investing. Our desired legacy is the excellent execution of meaningful ideas together with people who share our values.
We seek to align ourselves with the right clients and to align everything we do with the best interests of our clients. We focus on both the value we deliver to our clients and how we make our customers feel.
We believe innovation emerges from an open environment founded on mutual respect and collaboration among talented entrepreneurs. Harmony not consensus is the goal. Our culture is based on powerful ideas and unconstrained debate.
The“truth” cannot be known with absolute certainty when it comes to the future of asset values and stock prices. As such, the principle skill of an investor is the ability to assess stories – to tell between the tales of the future.Every person at Virgo brings a unique point of view and set of formative experiences to the firm’s pursuit of this “truth,” of the best stories.
Last and certainly not least, we founded Virgo to have fun. We love the challenge of investing and enjoy the comraderie of each other’s company. As Teddy Roosevelt once said, “far and away the best prize that life offers is the chance to work hard at work worth doing.”