Safeguard Properties is getting into the private equity game. The company has formed Safeguard Capital Group, which the company says is “a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.”

The company, which has an annual revenue of  $1.3 billion says the fund has more than $100 million of equity capital and will be actively investing across a variety of business services industries, with particular focus on real estate services, healthcare, consumer/retail, financial, industrial and energy/environmental markets generating between $20 and $500 million in revenue.

“We’re looking to partner with companies that have a compelling operating strategy and where we can invest for the long-term,” said Alan Jaffa, CEO of Safeguard Properties and Safeguard Capital Group advisory board member. “Our focus is on business services companies in varying degrees of transition that can benefit from the vast resources of Safeguard Properties.”

The company says that it will focus on a number of critical components when considering an investment, beginning with whether there is a strategic fit or not. The fund plans to review several characteristics of each company in its evaluation process, including:

  • Strong operating history
  • Quality leadership team
  • Niche focus or competitive advantage located in North America
  • Closely held businesses in transition or in need of liquidity
  • Corporate divestitures
  • Private equity backed companies
  • Possible turnarounds

Safeguard says that its investment approach will be different than traditional private equity firms. “Safeguard Capital Group offers its portfolio investments the advantage of the significant operating resources and relationships of Safeguard Properties with the flexibility and sophistication of a private equity investment model,” the company said.

“Safeguard Properties has 24 years of experience operating a very successful outsourced business service platform, which will provide valuable competitive advantages to its portfolio companies in a variety of areas including information technology, purchasing capabilities, vendor and customer management systems, and financial management.”