Our Approach

Our Strategy

 

Black Dragon Capital focuses on companies with strong recurring revenues typically between $5 to $50 million that are profitable and have positive cash flow. All investments are informed by our insight into the forces driving transformational change.

We take control positions in the companies we invest in, including board representation, and we leverage synergies and resources across portfolio companies. Our close connections with the leaders of our portfolio companies’ clients, distributors, and vendors in target industries amount to an unparalleled network. That, in turn, can translate to significant business development and referral opportunities for our companies.

Black Dragon has a distinctive, operationally led model, and our principals and advisors help guide driven entrepreneurs with established businesses toward market leadership.

Black Dragon’s Founder, Managing Director and CEO, Louis Hernandez Jr., and the firm’s team of highly experienced executives are accomplished operating leaders with track records of success in companies ranging from early-stage to multi-billion-dollar corporations, both public and private.

 

 

Our Methodology

 

The firm’s methodology is distilled in the Black Dragon Playbook™, the Black Dragon Leadership Index™ and the Black Dragon Way™ – three systems that reflect the Black Dragon team’s experience and successful investments and exits.

 

 

The Black Dragon Playbook™

 

The Black Dragon Playbook™ is an analytic framework for managing downside risk and fully realizing upside possibility. The Playbook serves as a set of guidelines for portfolio company leaders and their Black Dragon collaborators that support the creation of sustainable, market-leading, high-value enterprises.

The Playbook begins with a strategic assessment. This deep dive generates an in-depth analysis of the state of the industry. Then there is an internal review of how well the company’s product suite matches marketplace realities, and of operational and personnel questions.

From there, a strategy emerges – and becomes an Annual Operating Plan. Based on that, initiatives are established, and employee incentives are put in place. The Playbook works to align individual and company goals and performance.

 

 

The Black Dragon Leadership Index™

 

The Black Dragon Leadership Index™ provides a framework for hiring the best leaders at each position based upon the portfolio company’s stage of development.

The Index quickly identifies and evaluates current and future leaders on a range of criteria, both hard (such as track record in hitting performance targets) and soft (such as emotional intelligence).

When it comes to building leadership teams, diversity is key. It’s directly correlated with superior performance and a broader talent pool and will enable an organization to better connect with a larger and increasingly prosperous population of clients and customers. The Index is a useful tool for identifying and opening up opportunities for a bigger, more diverse leadership team.

 

 

The Black Dragon Way™

 

The Black Dragon Way™ is a set of values and ideas that define and shape a high-growth, high-performance, highly accountable culture. The Way helps embed that kind of culture in all portfolio companies.