Invitation

Accredited investors:

I wanted to invite you to participate in a business acquisition opportunity I’m investing in.

This is a fully passive investment led by an experienced sponsor. Through Hunter Equity Partners, our investment arm, I’ve secured an exclusive allocation in the deal and am pooling capital from the SMB Deal Hunter community. I’m leading the syndicate and managing the investment vehicle, so you can gain exposure to this opportunity without having to operate the business yourself.

The acquisition target is a 70+ year-old manufacturer of critical electrical components serving both public and private utilities as well as mass transit systems across the U.S. According to the sponsor:

• The company holds a niche monopoly in the load tap changer aftermarket, controlling ~80% of the market. A load tap changer (LTC) is a vital component inside large electrical transformers. It regulates and stabilizes voltage on the power grid, ensuring reliable electricity delivery to infrastructure nationwide.

• Because the company operates in the aftermarket replacement and maintenance segment, it is positioned to benefit from major infrastructure tailwinds, as large portions of the U.S. grid are reaching or exceeding end-of-life and require urgent reinvestment and modernization.

• The sponsor brings a proven track record with five successful full-cycle acquisitions and exits, including direct experience in this industry, and has achieved exits to top-tier private equity firms such as KKR.

Quick summary:

• 2024 EBITDA: $4.4MM

• 2024 Revenue: $16.9MM

• Purchase Price: $40MM

• Equity Target Raise: $5MM

• Target Investor IRR: 32.8%

• Target Investor MOIC: 2.9x

• Target Investment Period: 5 years

• Capital Distributions: Annual

• Target Close: October 16, 2025

• Minimum Investment: $50K

Here’s why I’m investing in this deal:

• Strong demand tailwinds are unavoidable. Much of the U.S. grid still relies on load tap changers from the 1960s–1980s, and as these units hit end-of-life, replacements can’t be deferred. That translates into a forecasted $133 million in revenue opportunities over the next 20 years, with a 20% surge expected in the near term.

• The company is exceptionally well-positioned to capture this demand. It already controls about 80% of the U.S. aftermarket for electrical tap changer repairs, in a space with very few players and extremely high barriers to entry.

• The intellectual property is highly defensible. Proprietary assets include thousands of schematic drawings, representing decades of knowledge that competitors would find nearly impossible to replicate.

• It’s reassuring that two leading institutional investment funds have already committed over $30 million to the deal, which validates the opportunity and adds strength to the capital structure.

• Leadership continuity stands out. The average executive has been with the company for more than 15 years, and the incoming CEO has over 30 years at the business, including the last five running day-to-day operations as COO.

• The sponsor adds further confidence. With deep manufacturing expertise, ownership of multiple CNC businesses, and a track record of 5 successful exits to strategics and large PE firms, he's shown he knows how to create value in this space.

• Growth opportunities are compelling. I'm especially excited about the potential to broaden product and service offerings and strategically increase pricing.

If you’re interested in learning more, request an invite to look at the data room. You must be an accredited investor to participate:

Thanks,

Helen Guo

P.S. I’ll also be inviting those who have requested more information above to a private webinar where I’ll be interviewing one of my partners Kyle (Head of Investments at Hunter Equity Partners, the investment arm of SMB Deal Hunter) with an opportunity for Q&A on Wednesday, Oct. 8.

Legal Disclaimer: The information herein concerns a private placement of equity securities offered under Regulation D as promulgated by the Securities and Exchange Commission. This email is not an offer for the sale of securities. The Offering referenced herein is qualified entirely by a certain private placement memorandum circulated by the issuer of this Offering, and securities may only be offered and sold pursuant to such memorandum and applicable securities laws.