Legend Capital focuses on conservative investment opportunities with relatively small American businesses. The firm was founded on the premise of providing “regular” people with an outlet to make investment returns that are generally reserved for the very wealthy. To do so, Legend Capital pools resources from accredited investors who otherwise would not have access to private equity transactions that can produce higher than average returns. Those opportunities often require a minimum investment in the hundreds of thousands.
Legend Capital funds are focused on building small businesses into larger ones using scale and technology to enhance their profitability. Each fund is built with a specific investment strategy, which is outlined before the fund starts. All of Legend Capital’s investments are placed with businesses with whom we have an existing relationship, where there is a high level of visibility into the business’ operations, and where technology can dramatically increase earnings.
In the case of Legend Capital’s first two funds, Legend Capital Fund I LP and Legend Capital Fund II LP, we have partnered with Vagabond Vending – an eight year old business that builds software, communications and operations technology for the $26 billion U.S. vending industry. These funds seek to help vending operators deploy technology that can substantially increase their profits and also assist Vagabond customers who are already high-producers expand their business in other ways.
In raising money for these funds, Legend Capital identified an opportunity in the market for a new company that could take advantage of an extremely favorable acquisition environment in the vending industry and leverage industry leading technology to transform under-performing, small to mid-market vending operations into a consolidated and highly-profitable company
That opportunity became Legend Commerce, which opened its first location in Connecticut in 2018 and has since expanded its focus across New England and the Mid-Atlantic. What started as a $3.5 million operator is on track to be a $30 million company in its second year of operations, with plans to exceed $100 million in its third. Legend Capital Fund III LP, in partnership with a larger private equity firm, provided the seed money for the company.
Legend Commerce is a strong and growing company, well on its way to becoming a major player in the industry. However, it is is currently focusing only on the New England and Mid-Atlantic regions. Accordingly, Legend Capital is planning a second company focused on the West Coast, Capital Provisions. That company will build on the lessons learned with Legend Commerce, but will also employ its own unique strategies.
Capital Provisions will initially be based in Los Angeles and will implement a scalable business model and grow through tuck-in acquisitions throughout California and the Western States. In 5 years, Capital Provisions’ base case plan is to create a $25 million company with over 5,000 vending machines and 100 micro markets. However, we believe there is an opportunity to grow to over $100 million.
Legend Capital has assembled an unbelievably strong team for Capital Provisions and began operations in July of 2020. Accordingly, we recently launched our latest fund, creatively named Legend Capital Fund IV LP, and are currently taking subscriptions from accredited investors.