Keep pulling the thread on Erik Brooks.
Ethos Capital has 16 partners who are former C-suite executives and has almost $6 billion of capital under management.
Ethos Capital operates with a single deal team and aims to make only one investment per year.
Identity Digital's business has EBITDA margins in the 60s, double-digit top-line growth, and 98% free cash flow conversion.
Ethos Capital executed a debt restructuring for Identity Digital, replacing a SOFR+6.25 unitranche loan with a securitized asset-backed loan at a fixed 6.8%, saving the company $50 million per year.
Ethos Capital is a middle-market private equity firm built to bring seasoned C-suite operators into every aspect of the investment process.
During the emerging market crisis of the late 1990s, Erik Brooks' investments in Eastern Europe saw their value drop from 70 cents on the dollar to 4 cents on the dollar.
Erik Brooks believes the pace of change driven by AI has fundamentally altered the investment landscape for many business models.
Vocado, an enterprise software business founded by Fadi Chehada that automated financial aid processing for schools, was sold to Oracle around 2015-2016.
Erik Brooks asserts that having an experienced operator like Fadi Chehada in management meetings elicits deeper and better quality information compared to traditional private equity investors.
Every partner at Ethos Capital is someone that co-founders Fadi Chehada or Erik Brooks has known for at least a decade.
Ethos Capital's investment focus is on sectors driven by macro themes, specifically financial services, supply chain, digital identity and infrastructure, and risk & resilience.
The C-suite partners at Ethos Capital have prior experience at companies including Disney, The Gap, Forbes, Google, Verizon, and Brinks.