We prefer start-up companies as they
offer excellent returns on growth with less risk than seed stage companies.
What We Look For
By targeting these companies we have
achieved some excellent returns on our investments. Throughout the years
startup and middle market companies have exceeded our expectations.
Occasionally we do invest in seed-stage
companies who are looking for investments of up to $5 million if the company
shows potential.
Industry Potential
In any investment we undertake, it is
important that there is the right amount of investment potential. As a rule, we
like to look at companies with mass market products, healthcare technology,
green energy, patented technologies and IT solutions.
We like to see a strong board of
directors and management team along with a strong brand. We examine the company
to see what the potential is to take the company into a global market to become
market leaders
We look at the structure of the company
and assess whether it can rapidly scale up to fulfill accelerated growth. If we
feel there are weak spots in a corporation that is restraining its growth, we
can then provide the skill and talent to help the company to achieve its
potential.
Adding Value
We understand that to add value to a
company we need to create tangible assets in which you can assign a value. In
each company we partner with we undertake the following:
Operations - We help systematise
operations to ensure everything runs smoothly and efficiently. We measure each
stage of operations so the management team can identify weaknesses and act to
ensure best operations performance. By doing this, we not only improve growth
capacity but also form an operation that works in harmony.
New Markets - Some of the best growth
opportunities are found by targeting new emerging markets. Asia has been and is
one of the most important emerging markets today. Over the last decade, we have
dedicated a division in our company just to build and form relationships in the
Asian market. We have one of the strongest partnership networks in Asia. This
is becoming one of the fastest growing areas in our company providing some
exciting opportunities for our clients.
Partnership With Management
It is important that companies that we
partner have a strong management team; this is the key to the success of all
companies that we partner. When we partner a team we like to ensure that
everyone involved have an interest in what the aims are, we do this by
structuring equity reward schemes that represent the talent and responsibility
of the management team member. The aim of offering equity in the company is to
ensure that the management teams are focused and want success for the company.
We work with the CEO of each of our
portfolio companies to decide the best equity distribution plan, it will be the
CEO’s responsibility to execute the plan by allocating the equity among his
team.
Process
Working with the CEO - We believe in
working closely with the CEO of our portfolio companies, if needed we may even
put one of our members into a company to assist the CEO. This will only happen
if the CEO is busy and really needs help with any legal, banking, or
negotiation issues.
It is important to understand that we
are not there to undermine the CEO, it is just that sometimes the CEO can be
busy with issues outside of the scope of his management team.
Due Diligence
Due diligence happens before any
investment. This will involve an in-depth consultation with the CEO and his management
team. We take a look at the current finances of the company along with all
future projections. The time allowed for the due diligence process will depend
on the company and the size of investment required.
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