Red Acre Capital has acquired Personal Care Inc., operator of the Hair's
Red Acre Capital (http://www.redacre.com/) has acquired the assets and operations of Personal Care Inc., operator of the Hair's
Everyone knows Baby Boomers are beginning to retire. But one aspect of their mass retirement that's generally been overlooked is Boomer-owned businesses: As many as 12 million Boomers will soon sell the businesses they have built into successful enterprises — enterprises that are now the focus of Red Acre Capital's Micro-Cap Value Fund.
A boutique private equity firm, Red Acre puts investors ahead of the curve through investments in a diversified group of micro-cap companies (those with revenues between $1 million and $10 million). Investors looking for a hedge against Boomer-related risks in their portfolios will find a strong one in this asset class:
“When we started researching the market in 2004, we realized Baby Boomers greatly outnumber the next generation,” explained Red Acre president and CEO Rajesh Patel. “What would happen to their companies when they retire? Our research pointed to a buyer's market developing for micro-cap companies. That's exactly what we are seeing today. We launched the fund to help investors passively access the micro-cap asset class and take advantage of this buyer's market.”
For retiring Boomers, the Micro-Cap Value Fund provides a hassle-free way to sell their businesses quickly, even in today's buyer's market. In fact, the owner of Hair's
“He knew the business would sell quickly, because we were a fund and we had the money,” Patel said. “Hair's
It is a situation investors will see increasingly in the coming years. Baby Boomers currently own over 50% of American businesses. And while no one knows exactly how their retirement will affect financial markets, it's clear that many will need to sell their businesses to retire.
“Boomers own about $5 trillion of business assets, a significant portion of which will be sold when they retire,” Patel said. “Red Acre is actively researching Boomer-owned micro-cap companies and ready to acquire the standouts.”
Launched in 2006, Red Acre is a private investment company that manages funds composed of small- to middle-market companies, with a particular focus on Baby Boomer-owned businesses. The firm, helmed by Rajesh Patel and Kevin Foster, invests with a view toward creating significant value in the long term. Learn more at http://www.redacre.com/.