Private Equity, Private Credit & Family Offices
Hands-On Solutions for Small-Cap Portfolio Risk
In today's private capital environment, operational stability, not just leverage, drives portfolio risk. For funds managing small business and lower middle market investments, underperformance can emerge suddenly: margin compression, liquidity strain, lender disengagement, or founder disengagement. These challenges often outpace traditional oversight and require direct, tactical execution to preserve value.
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Fortis Business Advisors serves as a specialized workout partner for private equity, private credit, and family office investors operating in the sub-$20M space. Whether working on behalf of the fund, the portfolio company, or as a bridge between the two, we deliver pragmatic solutions that stabilize operations, clarify collateral, and unlock monetization or turnaround outcomes.
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We also support Small Business Investment Companies (SBICs) facing exposure in distressed or underperforming holdings, offering right-sized execution support aligned with fund requirements and borrower realities.
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We step in when internal teams are stretched or advisory bandwidth is limited, especially when asset impairment, distressed exits, or failed acquisitions cloud the path forward. Our dual-stakeholder approach enables us to work directly with portfolio company management or under the direction of the fund, delivering execution and results without delay.
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In an era of tight liquidity and limited refinancing options, Fortis provides real-world support where it matters most: cash flow stabilization, asset-based recovery, distressed sale preparation, and structured wind-down. We don't just assess the risk, we help resolve it.
WHAT FORTIS PROVIDES
Execution-focused services to stabilize portfolio companies, unlock collateral value, and preserve investor capital in distressed or underperforming holdings.
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​Fortis supports private capital stakeholders with pragmatic solutions that bridge the gap between fund strategy and on-the-ground execution. Whether managing a distressed portfolio asset, navigating covenant breaches, or assessing a non-performing acquisition, Fortis provides the operational clarity and hands-on support needed to define options and drive resolution.​​​​​
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Our approach is designed to meet both sides of the problem: we can support the fund directly, step into portfolio companies as operators or CROs, or, when situations fracture, engage independently with borrower-side or lender-side responsibilities, always with alignment, transparency, and value preservation as the goal.
Capital-Aligned Solutions
WHEN WE HELP
Private capital managers often spot distress early, but when execution risk rises or operational clarity fades, Fortis steps in to stabilize, restructure, or recover.
Portfolio Slide or
Cash Burn
When a portfolio company shows accelerating losses, liquidity pressure, or margin collapse, Fortis provides rapid diagnostics and short-term cash flow control.
Conflict Between
Fund and Operators
If sponsor/operator alignment breaks down, Fortis can step in as interim management or neutral third party to restore order and carry out the business plan.
Covenant Breach or
Loan Default Risk
If a holding company is at risk of breaching covenants or has already breached, Fortis delivers scenario modeling, go-forward strategy, and creditor-facing support.
Asset Obsolescence or
Inventory Risk
When inventory is aging, seasonal, or no longer priced for the market, Fortis provides valuation, recovery strategy, or structured liquidation to protect downside.
Stalled Sale or
Failed Recap
When an exit collapses or a recap falls through, Fortis steps in with monetization, repositioning, or wind-down planning to preserve capital and credibility.
Silent Distress or
Growing Exposure
For underperformers not yet on fire, but clearly out of formula, Fortis offers early-stage diagnostics and fund-side shadow advisory to assess next steps quietly.
Why Fortis Business Advisors
Fortis delivers disciplined, execution-ready support across the lower middle market and small business segments, where operating volatility, resource constraints, and value-at-risk demand hands-on solutions.
COMPLEMENTARY INTEGRATED SOLUTIONS
A flexible suite of execution-ready services designed to protect portfolio value, stabilize distressed holdings, and support fund-driven restructuring or exit strategies.
FEATURED SUCCESS
Chief Financial
Officer
Having performed their analysis, it was evident that we had deeper issues. Fortis developed a go-forward plan to point us in the right direction.​
INDUSTRY INSIGHT
Building on the theoretical model, this article walks through an actual application of the stress testing across a real-world company. From identifying fixed-cost traps to clarifying inventory distortions, the analysis yielded key restructuring moves and informed stakeholder communications, showing how stress tests transition from paper to practice.
This article outlines the practical framework for assessing margin erosion risk across companies, especially those facing demand volatility, pricing pressure, or variable cost surges. Stress testing can help fund managers anticipate covenant breaches, identify underperformers, and build defensible workout strategies before defaults escalate.