At some point in a company’s development, the owners of an entrepreneurial, privately held company usually recognize that institutional equity sponsorship is required to reach the next level. At the same time, some of the owners are often seeking liquidity. In this case, Hampshire would look to execute a leveraged recapitalization. While transactions of this type typically result in the Company incurring some additional leverage, these transactions can differ significantly from classic leveraged buyouts in that growth, not financial leverage, creates the bulk of returns for management and investors. Rather than relying on selling assets or financially restructuring the business to create value, we focus on building value through growth. Importantly, we always seek to create prudent capital structures that will afford our portfolio companies the greatest degree of flexibility to achieve their financial goals.