The “MB” in “Headwaters MB” stands for Merchant Banking. We won’t take a company on as a capital formation client unless we’re also willing to put our own money into the transaction. And since founders and board members of Headwaters are among the biggest investors in the Rio fund, our bar is even higher.

Our first fund, Rio Grande Investment Partners LP, has developed a stellar track record investing solely in Headwaters investment banking client companies. Every company in the Rio portfolio is either thriving or has already been sold. It’s been a very high return endeavor for us, and is an initiative we’ll be focusing on and strengthening in coming years.