Investment Criteria
Our investment focus centers on high-quality businesses with strong growth potential and profitability. We seek companies that align with our strategic criteria and sector expertise.
Our Initial Investment Criteria
Max's early experience supporting Horne Construction, his father's general contracting business, provided practical insight into how specialty construction services operate within construction and related industries. Next Runner Capital's investment thesis is that companies in this sector are attractive because they exhibit at least two or more of the following qualities:
Reputation Moat
A strong reputation creates switching friction: when customers face meaningful risk if a provider fails, they stick with the company they trust.
High Barriers to Entry
Some businesses enjoy natural monopolies because starting a competitor is prohibitively difficult. Specialized licensing, heavy capital requirements, and the need to attract skilled labor all discourage new entrants.
Low Share of Customer Spend
When a service represents a small slice of the customer's overall budget, there's little incentive to switch for marginal savings. Customers prefer reliability over pennies saved.
Embedded Relationships
Services that become part of a customer's daily operations are difficult to unwind.
Example Businesses
While our search is not confined to these areas — and we expect to discover compelling opportunities across many industries — these are the types of companies we will look at first.
Fire Sprinkler Inspection & Maintenance
Compliance-driven with recurring schedules and high switching costs.
Backflow Testing & Certification
Mandated by regulation, inexpensive per site, and performed annually.
Roofing Service & Leak Response
Emergency-driven and reputation-based, with recurring maintenance contracts.
Waterproofing & Building Envelope Repair
Specialized expertise, high failure costs, and limited competition.
Special Inspections & Materials Testing
Code-required and embedded in project workflows.
HVAC Commissioning & TAB
Critical for project closeout and recurring retro-commissioning.
These businesses represent our starting point. Next Runner Capital remains open to uncovering additional businesses in other industries that demonstrate the same durable characteristics.
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