Investment Strategy

OVERVIEW
XMi High Growth Development Fund, LLC (“XHG”), a Tennessee Small Business Investment Company, invests in Tennessee based small businesses. We will invest up to $3 million in companies which have the potential for exponential growth and can create jobs throughout Tennessee. While we typically make control-oriented investments, we have extensive experience with a variety of deal structures, including minority investments, growth capital and partnering with other venture capital firms.

SIZE
XHG looks to make investments in Tennessee-based, privately held companies with fewer than 100 employees and primarily focus on start-up and early stage ventures.

DEAL STRUCTURE
XHG has experience in structuring investments in a variety of ways to provide the greatest flexibility for all parties involved. These include:

  • Seed and start-up capital
  • Growth equity financing
  • Partnerships with other strategic or financial buyers
  • Control-oriented management buyouts of corporate divisions of large privately held and publicly traded companies
  • Minority equity or convertible debt investments
  • Ownership restructuring and recapitalizations

INDUSTRY & COMPANY CHARACTERISTICS
XHG strongly believes in creating value through partnering with strong management in an industry or situation with potential for significant growth. We are open to reviewing all industry opportunities but have particular interest in:

  • Healthcare
  • Clean Energy
  • Automotive
  • Privatization and Logistics
  • Manufacturing
  • Business Services
  • Technology and Informatics

XHG is committed to providing capital and resources to qualified businesses including minority-owned businesses and woman-owned businesses.

We will not invest in companies which are principally engaged in:

  • Professional services provided by accountants, doctors, or lawyers
  • Banking or lending
  • Real estate development
  • Insurance
  • Oil and gas exploration
  • Direct gambling activities

Our primary focus is on companies which could benefit from our partners’ experience and expertise as well as take advantage of the operational support services which XMi Holdings can provide. We are generally not passive investors and look to actively assist our portfolio companies to achieve its potential.