ASSETS UNDER MANAGEMENT Portfolio
ZARKYN manages $24 million in institutional capital deployed across a carefully curated portfolio of exceptional businesses. This represents the confidence of our limited partners in our investment thesis, operational expertise, and commitment to delivering superior returns through disciplined value creation.
Our Growth Trajectory
Since inception, ZARKYN has grown to $24 million in Assets Under Management, reflecting consistent investor confidence and strong portfolio company performance. This meaningful capital base positions us as a credible, institutional-quality PE firm capable of identifying and executing on significant investment opportunities across mid-market companies.
Our $24M fund size is strategic large enough to pursue platform acquisitions and deploy meaningful operational resources yet focused enough to maintain our hands-on partnership approach with every portfolio company. This scale allows us to be selective in our investments while providing substantial value creation support to each business we partner with.
Why $24M Matters
Our $24 million AUM demonstrates several key capabilities:
Institutional Credibility – We attract and retain sophisticated institutional limited partners who conduct rigorous due diligence and expect institutional-quality execution. Their confidence in ZARKYN demonstrated through capital commitments validates our approach.
Meaningful Scale – With $24M under management, we can pursue platform acquisitions in the $5-15M range, deploy significant operational capital, and support transformational initiatives. This is real capital with real impact on portfolio companies.
Disciplined Focus – We've grown to $24M deliberately, maintaining our commitment to thorough due diligence, hands-on operational partnership, and long-term value creation. We don't chase capital we partner with aligned investors.
Operational Advantage – Our $24M capital base enables us to invest meaningfully in portfolio companies whether through acquisition financing, growth capital, operational improvements, or strategic add-on acquisitions.
Portfolio Depth
Our $24M is strategically deployed across a focused portfolio of exceptional businesses, enabling us to:
- Conduct rigorous due diligence on each opportunity
- Provide meaningful operational support and resources
- Support management teams with capital and expertise
- Pursue strategic add-on acquisition strategies
- Build deeper industry relationships and sourcing advantages
Our Commitment
As we manage $24 million in institutional capital, we remain focused on what matters most: identifying exceptional investment opportunities, building stronger businesses, and delivering exceptional returns to our investors. Every dollar of our $24M AUM represents investor trust and portfolio company potential. We steward that capital with discipline, transparency, and accountability maintaining our commitment to "Vision into Value" across every investment, every year.
PROJECT 1: NEXUS TECHNOLOGIES
Industry: Cloud-Based Software Solutions (B2B SaaS)
Investment Date: 2021
Entry Valuation: $8.5 Million
Entry EBITDA Multiple: 5.2x
Investment Size: $6.5 Million
Nexus Technologies is a leading provider of cloud-based workforce management solutions serving mid-market enterprises across logistics, retail, and hospitality industries. The company provides real-time employee scheduling, labor forecasting, and compliance management tools that help customers optimize labor costs and improve operational efficiency.
At the time of ZARKYN's investment, Nexus had:
- $12 Million in annual recurring revenue (ARR)
- 150+ enterprise customers
- Strong product-market fit in core logistics segment
- Experienced founding team with 15+ years in HR tech
- Significant organic growth (25% YoY) but operational inefficiencies
- Fragmented go-to-market strategy across verticals
Investment Thesis
ZARKYN identified Nexus as a compelling platform acquisition opportunity based on:
Strong Fundamentals
- Best-in-class product with high customer satisfaction (NPS 68)
- Sticky recurring revenue model with 95%+ retention rates
- Experienced management team with domain expertise
- Large total addressable market (estimated $4B+ in logistics/retail/hospitality)
Operational Improvement Opportunity
- Underoptimized sales and marketing spend (inefficient customer acquisition)
- Fragmented product roadmap lacking strategic prioritization
- Weak financial controls and reporting infrastructure
- Opportunity to consolidate go-to-market and increase pricing power
- Potential to expand into adjacent verticals (hospitality, healthcare)
Add-On Acquisition Strategy
- Market consolidation opportunity in fragmented workforce management space
- Identified 3-4 potential bolt-on acquisitions in adjacent markets
- Opportunity to build larger, more valuable platform
Value Creation Strategy
Year 1-2: Foundation & Optimization
- Rationalize product roadmap (focus on highest-ROI features)
- Implement modern financial and operational reporting systems
- Consolidate sales strategy across verticals (reduce CAC, improve conversion)
- Hire VP of Product and VP of Sales (retained existing CEO/CTO)
- Implement customer success program to drive expansion revenue
Results:
- Revenue growth: 25% → 40% YoY
- EBITDA improvement: 12% → 22% margins
- CAC payback period: 18 months → 12 months
- Revenue per customer: +$8K annually through upsells
Year 2-3: Expansion & Add-Ons
- Launch into hospitality vertical (adjacent TAM $2B+)
- Acquire 2 smaller competitors (Workforce Pro, ScheduleMatch) for $2.8M combined
- Build platform capabilities to serve combined customer base
- Expand customer success and support teams
Results:
- Revenue growth: 40% → 55% YoY
- Customer base expansion: 150 → 320+ customers
- EBITDA improvement: 22% → 31% margins
- Revenue diversification: Logistics 40%, Retail 35%, Hospitality 25%
- Platform synergies generating $1.2M in annual run-rate savings
Year 3-4: Scale & Profitability
- Continued product expansion and vertical penetration
- International expansion exploration
- Team scaling to support 50+ headcount
- EBITDA optimization and working capital improvements
Final Results (Prepared for Exit):
- Annual Revenue: $12M → $28M (3.5x growth)
- EBITDA: $1.5M → $8.6M (5.7x improvement)
- Customer Count: 150 → 320+ customers
- EBITDA Margin: 12% → 31%
- Expansion Revenue (upsells): 18% of total (from 8%)
- Team Growth: 45 → 75 employees
Exit Strategy & Returns
Exit Timeline: 4 years (planned)
Exit Metrics:
- Revenue: $28 Million
- EBITDA: $8.6 Million
- Exit Multiple (Target): 9-11x EBITDA
- Projected Exit Value: $77-94M
- ZARKYN Return Multiple: 12-14x on $6.5M investment
- Projected IRR: 85-95%
Potential Buyers:
- Strategic acquirers (larger HRIS/HCM platforms like Workday, ADP, Kronos)
- PE roll-up platforms seeking workforce management consolidation
- Private equity firms building adjacent platforms
Key Success Factors
✓ Strong founding team retained and incentivized
✓ Clear product-market fit in initial market
✓ Disciplined add-on acquisition strategy creating meaningful synergies
✓ Revenue diversification reducing customer concentration risk
✓ EBITDA margin expansion through operational discipline
✓ Expansion revenue and upsell success improving unit economics
✓ Market tailwinds in workforce management software adoption
ZARKYN Value Add
Beyond capital, ZARKYN provided:
- Strategic guidance on go-to-market consolidation
- Assistance recruiting VP of Sales and VP of Product
- Due diligence support on add-on acquisitions
- Financial modeling and operational benchmarking
- Introductions to potential strategic buyers (for eventual exit)
- Quarterly business reviews and accountability
PROJECT 2: PREMIER HOME SERVICES GROUP
Industry: Home Services (HVAC, Plumbing, Electrical)
Investment Date: 2020
Entry Valuation: $12 Million
Entry EBITDA Multiple: 6.8x
Investment Size: $8 Million
Premier Home Services Group is a regional operator of residential home services businesses across HVAC, plumbing, and electrical services in the Southeast. The company operates through 4 acquired brands and 6 service locations serving the Atlanta, Nashville, and Charlotte metropolitan areas.
At the time of ZARKYN's investment, Premier had:
- $18 Million in annual revenue
- 85+ service technicians
- 4 established brand identities (fragmented operations)
- Strong customer retention (85%+) in core markets
- Significant owner dependence (founder/owner still operationally involved)
- Inconsistent pricing and operational standards across brands
- Limited scalability due to fragmented systems and processes
Investment Thesis
ZARKYN identified Premier as a compelling platform consolidation opportunity based on:
Strong Market Fundamentals
- Fragmented, highly competitive home services market with consolidation trends
- Recurring residential customer base with multiple service needs
- High-margin businesses with 20-30% EBITDA potential
- Market growth driven by aging housing stock and population growth
Operational Transformation Opportunity
- Multiple brands operating independently (opportunity to centralize)
- Inconsistent pricing and service delivery standards
- No unified scheduling, dispatching, or customer management systems
- Underutilized technician capacity across locations
- Weak sales/marketing coordination (missing cross-sell opportunities)
- Founder dependence creating risk and limiting growth
Bolt-On Platform Strategy
- Large market for add-on acquisitions in fragmented home services space
- Target 3-4 additional service companies in existing markets over 3 years
- Opportunity to build regional powerhouse and scale for eventual exit
Value Creation Strategy
Year 1: Foundation & Systems
- Hire experienced CEO (separate from founder—transitioned to advisory role)
- Consolidate operations into unified system (scheduling, dispatching, billing)
- Implement enterprise accounting/financial reporting
- Standardize pricing across brands (10-15% uplift without churn)
- Create unified customer management platform
- Hire regional VP of Operations
Results:
- Revenue growth: $18M → $22M (organic + price increases)
- EBITDA improvement: 15% → 20% margins
- Technician utilization: 72% → 84%
- Customer acquisition cost reduction: 25%
Year 1-2: Add-On Strategy
- Acquired 2 complementary service companies:
- Turner Electrical ($4M revenue, 18% EBITDA margins)
- HomeServe Plumbing ($5.5M revenue, 16% EBITDA margins)
- Combined entities maintained brand equity while consolidating back-office
- Eliminated redundant corporate functions (HR, Finance, Admin)
- Cross-trained technicians to serve multiple service lines
Results:
- Revenue: $22M → $31.5M (organic growth + acquisitions)
- EBITDA: $4.4M → $7.2M (margins 20% → 23%)
- Acquisition synergies realized: $800K annually
- Customer base now more diversified across service lines
Year 2-3: Optimization & Scaling
- Continued market share gains in core markets
- Improved technician retention through compensation alignment
- Expanded service menu (added electrical, HVAC to plumbing-focused customers)
- Invested in technology platform for customer engagement
- Added commercial/light commercial services (adjacent market)
- Team expansion: 85 → 125+ technicians
Results:
- Revenue: $31.5M → $42M (32% growth)
- EBITDA: $7.2M → $11.2M (margins improved to 27%)
- Expansion revenue (cross-sell): 18% of growth from existing customers
- Technician productivity: 22% improvement
- Customer NPS: 58 → 72 (significant improvement)
- Added commercial customer segment ($4.2M revenue contribution)
Year 3-4: Scale & Profitability
- Entered adjacent market (Birmingham, AL)
- Acquired 3rd add-on company (consolidated HVAC provider)
- Built sophisticated customer management and predictive maintenance platform
- Invested in commercial services expansion
Final Results (Prepared for Exit):
- Annual Revenue: $18M → $52M (2.9x growth)
- EBITDA: $2.7M → $14M (5.2x improvement)
- EBITDA Margin: 15% → 27%
- Service Locations: 6 → 12 locations
- Technicians: 85 → 180+ technicians
- Revenue Mix: Residential 65%, Commercial 35%
- Customer Count: 2,800+ active residential customers
- Team Size: 200+ total employees
Exit Strategy & Returns
Exit Timeline: 4 years
Exit Metrics:
- Revenue: $52 Million
- EBITDA: $14 Million
- Exit Multiple (Target): 7-8x EBITDA (home services multiples)
- Projected Exit Value: $98-112M
- ZARKYN Return Multiple: 12-14x on $8M investment
- Projected IRR: 80-90%
Potential Buyers:
- Large national home services consolidators (Frontdoor, Hearthstone)
- Roll-up platforms in home services space
- Regional PE firms building adjacent platforms
- Strategic acquirers seeking footprint expansion
Key Success Factors
✓ Founder transition to advisory role (leadership change)
✓ Systems consolidation unlocking significant operational synergies
✓ Disciplined add-on strategy creating scale
✓ Margin expansion through pricing optimization and efficiency
✓ Technician retention and compensation improvements
✓ Technology investment driving customer experience
✓ Commercial services expansion reducing seasonality
✓ Market consolidation opportunity well-positioned for exit
ZARKYN Value Add
Beyond capital, ZARKYN provided:
- CEO recruitment and onboarding (critical leadership transition)
- Operations consolidation strategy and execution
- Acquisition identification and due diligence (add-on companies)
- Technology vendor evaluation and implementation
- Pricing strategy and customer segmentation analysis
- Working capital optimization and cash flow management
- Exit strategy planning and buyer identification
- Quarterly business reviews and operational accountability