What we expect
We look for the following when evaluating potential investments:
Quality Management Teams
We seek entrepreneurs with:
- The vision and imagination to challenge and fundamentally change the dynamics of new and existing markets
- The ambition to build world-class companies
- The character and determination to realize their ambitions
The management teams we back must be willing to work closely with us. They must possess the ability to deal with the inevitable surprises and challenges of developing a growth-oriented business.
Large Potential Markets
A company's vision, products, and services should solve large and important problems for readily identifiable groups of customers.
The companies we back should be seeking to establish and maintain a leadership position in their respective markets.
Sustainable Business Models
We are looking for companies with differentiated models in defensible markets.
This means we will look to invest in companies with a low risk of commoditization and the likelihood of large profit margins.
Source of Competitive Advantage
Companies that we invest in must be able to establish a measurable and sustainable competitive advantage. This advantage can be gained through:
Appropriate Capital Requirements
- The development of intellectual property
- Significant cost advantages
- Key channel relationships
- Preferential contracts
- Superior product development or customer service or, in some cases,
- By being first-to-market with a new product or service with the potential for "customer lock-in"
The capital requirements of the business must be such that we will be able to establish and maintain a meaningful percentage ownership in the company. This is necessary to justify our commitment to bring the collective resources of the partnership to every investment.
From a capital requirements perspective, it is also important that the prospective business not require an inordinate amount of up-front capital to determine the long-term viability of the product or business model.
Path to Liquidity
We pride ourselves on being patient, long-term investors; however, we realize our limited partners have an expectation of liquidity.
As such, we expect all of our investments to provide a reasonable roadmap to liquidity within a five to seven year timeframe.
Opportunity to Add Value
We look to partner with entrepreneurs who recognize our ability to add value.
We know how to help turn a great vision into a successful business. We want to work with entrepreneurs who are eager to leverage this knowledge.