WEEKLY THOUGHTS

Here is something that caught our eye this week: Rule of 40 The central tenant of Chenmark’s investment thesis is to acquire small operating companies with steady — but not necessarily high — growth rates coupled with a long history of profitability, and an enduring, defensible competitive position. As is fairly common in the broader private equity space, we typically center internal valuation discussions around a multiple of EBITDA, although that is really a shortcut way to frame our primary goal of optimizing for long-term cash-on-cash returns. We acknowledge that other investors utilize different mental models when it comes to