ABOUT
Right Lane Industries
Right Lane Industries is an industrial holding company which focuses on acquiring lower middle market and middle market businesses out of a range of situations, including:
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Healthy Operating Businesses
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Carve-Outs / Divestitures
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Underperforming/Turnaround Assets
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Distressed/Bankrupt Companies
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Other Esoteric Assets
Right Lane is majority owned and controlled by its management team, resulting in a number of advantageous dynamics for all counterparties, including:
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“Boots-on-the-Ground” decision making allows for quick and transparent transactions from initial diligence through close
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Long-Term to Permanent Investment Horizon allows for adequate investment in people, customer relationships and product development
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Short dated transition services agreements (TSAs) with corporate sellers due to RLI corporate resources
Right Lane focuses on providing increased bandwidth and resources to it’s operating companies to execute on prudent growth over time. The keys to this approach are shared holding company resources in the areas of Finance, Purchasing, IT, Marketing, HR, Strategy and more.
Why "Right Lane"?
We are often asked why we named our firm Right Lane, which is commonly associated with the slow lane on a highway. Drivers seeking the fastest route through traffic conventionally seek out the 'fast' left lane, or attempt to swerve through traffic to gain an advantage. But in high traffic settings, the left lane invariably becomes over-crowded, with more cars in the lane resulting in more starts and stops, and slower progress; while frequent lane switching can result in accidents or bad bets. Meanwhile, the right lane tends to suffer from net outflows of cars as drivers pull into the perceived faster lanes, or exit the highway altogether, and therefore offers the fastest and smoothest route.
Investing is a high traffic setting. The pursuit of investment returns is competitive. While many investors attempt to generate returns by chasing the popular investment of the day (the financial equivalent of the left lane), or by making large numbers of trades (weaving through lanes), Right Lane focuses on overlooked or complicated situations that other investors often regard as "too difficult." We conduct deep due diligence and make a small number of investments with conviction, with the intent of staying invested for extended periods of time-- longer than a traditional private equity investment horizon of 3 to 5 years.
Right Lane Values
The core to Right Lane’s values is the permanent targeted hold period. Right Lane Industries is majority owned by its management, thus enabling the businesses to truly be run for the long-term, creating compelling dynamics:
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Patient Ownership: eliminates the need for short-sighted decision making to please semi-informed third party investors on a quarter to quarter basis.
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Reinvestment in Operating Companies: the desire for long dated success leads to the proper reinvestment of capital and other resources into people, products, and property.
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Transparency and Speed of Execution: as a result of “on-the-ground” decision makers making real time decisions, as evidenced in the closing of previous acquisitions within 30 days of LOI execution.
As part of RLI, operating companies benefit from the cross-pollination of best practices, industry insights, corporate resources and more. This allows the RLI operating companies to build greater value as part of the family, rather than stand-alone.