A majority of any CBGF investment is to be used for growth. One of the common barriers to growth we encounter are the competing goals of active management/shareholders and those of inactive or retiring shareholders. One group seeks growth and reinvestment, while the other is seeking to sell or to extract annual dividends from the business. This dynamic needs to be resolved before a business can make a commitment to an ambitious growth strategy.
Depending on the circumstances of any given transaction, up to 49% of CBGF’s overall investment could be used for shareholder buyout so long as the payout isn’t excessive (based on circumstances) and it facilitates an accelerated growth strategy.