Strategy
Rigorous underwriting paired with defensive, LP-optimized structuring. We target 15-20% net IRRs while heavily mitigating tax and regulatory drag.
Our Approach
The MEUS investment strategy is dual-mandate: acquire high-quality, cash-flowing US assets, and structure them so that foreign LPs retain the gross returns.
We focus on middle-market buyout co-investments and structured equity in sectors with low regulatory sensitivity or pre-clearable CFIUS profiles.
Target Sectors
- B2B Software & Services: High recurring revenue, sticky customer bases.
- Healthcare IT: Non-clinical operations and billing solutions.
- Industrial Technology: Supply chain optimization and automation.
The Structuring Edge
A 25% gross IRR can quickly become a 15% net IRR for a foreign LP if Effectively Connected Income (ECI) and Branch Profits Tax are triggered. We utilize leveraged corporate blockers and optimize debt-to-equity ratios to strip earnings efficiently while complying with Section 163(j) limitations.
Model the exact impact with our Tax Impact Tool or simulate the cash flows using our IRR Projector.
Common Mistakes in US Direct Investing
Ignoring FIRPTA until exit
Treating real estate rich companies (USRPHCs) as standard equity, resulting in unexpected withholding on gross proceeds at sale.
Late CFIUS Analysis
Signing term sheets before determining if a mandatory filing is required, risking forced divestment.
Commingled Compromises
Sovereign funds losing Section 892 exemptions because they invest through a fund that engages in commercial activity.