Corporate Investment - Technology
We are an experienced financial sponsor, specializing in control-oriented growth investments in the technology sector. Using various transaction structures, we invest in small to medium-sized technology-driven businesses that exhibit significant growth potential.
The team currently manages three funds, with total commitments of more than $1 billion. Over the past 10 years, we have completed more than 40 investments on behalf of our limited partners.
Who we are
We are a dedicated multinational investment team of seasoned professionals with extensive technology experience and a broad range of operational and financial backgrounds. We have significant professional experience covering all aspects of the investment cycle, including deal origination, transaction structuring, post-investment management and investment realization. Operating as one decision-making unit across two offices in New York and London, we benefit from a diverse spectrum of viewpoints and are able to fully leverage Investcorp's global network.
What we look for
We invest in technology-driven companies that are primarily based in North America and Europe. Several of our portfolio companies have significant operations in Asia, the Middle East and South America. Areas of focus include software, IT services, telecommunications, semiconductors and digital media. We do not invest in life sciences or medical device companies.
We invest using a traditional fund structure and seek to allocate $15-50 million of equity in companies generating $10-250 million in revenues. Under certain circumstances, we can finance smaller or larger transactions by leveraging our global network of capital sources. Unlike traditional leveraged buyouts, we generate returns primarily though the growth of companies in which we invest. We target companies that compete in rapidly growing, yet largely underpenetrated industries. We utilize modest or no debt in financing our acquisitions to ensure that our portfolio companies have the flexibility to grow and compete in fast-growing industries.
The characteristics we look for in potential investments are:
- Technology-driven competitive advantages
- Industry leaders with the capacity to achieve above-market-level growth rates
- Highly scalable business models, enabling significant margin expansion through growth
- Recurring revenue models with long-term customer contracts
- Strong and motivated management teams.
How we invest
We seek to retain majority control or hold a substantial minority position with significant control in our investments. In some situations we will collaborate with trusted equity partners with whom we have developed longstanding relationships. We have experience with, and are comfortable investing in, a wide variety of transaction structures, from basic growth-capital to more complicated corporate carve-outs and take-privates.
We believe that investing behind strong management teams in fast growing industries delivers superior returns. Our ability to provide strategic guidance by leveraging decades of experience working with high-growth technology companies coupled with adequate access to capital, provides our companies with a unique edge towards outperforming the industry.
We serve as a trusted resource for our management teams and strive to create economic value in the following ways:
- Actively engaging with management teams to shape strategic direction
- Formalizing financial controls and identifying key drivers of growth
- Implementing best practices across our portfolio companies
- Evaluating add-on acquisition opportunities and enabling access to additional capital
- Facilitating introductions to strategic partners, industry experts and potential new hires
- Enabling international expansion by exploiting the strength of our global network.