As part of this approach, Castle Harlan strives to partner with the existing management of acquired companies. Executive officers are invited to co-invest in the acquisition, giving senior management a significant stake in the company's growth and increase in value. Castle Harlan professionals work closely with the firm's management team to develop a strategic growth plan that focuses on such areas as product diversification, growth in market share, efficient and high quality manufacturing programs, strategic acquisitions, as well as other important financial and administrative issues. No investment is permanent, and the ability to exit a venture is critical to optimizing economic value. Consequently, Castle Harlan seeks out investments that have a high likelihood of being acquired by strategic buyers or are likely candidates for public offerings.
Resorcinol is the primary agent for bonding steel belts to the rubber in steel-belted radial tires.
In addition, TCI was a divestiture under duress, driven by a principal owner's decision to exit all direct private equity investments for strategic, regulatory, and liability reasons. As the world's largest independent manufacturer of artificial diamonds used in oil and gas drill bits, and one of the most innovative and efficient producers in its industry, US Synthetic held a significant market position capable of further expansion. The company had been steadily gaining market share and had become the sole supplier to one of its major customers. In addition, the company's founder and major shareholder was advancing in age and the family desired to reorganize its affairs and obtain liquidity from its holdings. The reliability of these investment criteria was underlined by the sale of US Synthetic in May 1998 to a financial buyer.