We believe the software industry offers a unique investment environment for a disciplined, operationally focused fund because the market is liquid, uniquely fragmented, and is continuously evolving and consolidating.
TVC Capital practices a blended strategy that combines expansion stage venture capital investing and a targeted buyout approach with a focus on value based investing and shareholder activism via Board leadership.
TVC pursues a proactive shareholder philosophy by maintaining a significant board presence in each of our portfolio companies. We believe this is the most effective way to implement operational best practices and create a path to liquidity for our investors.
Invest in lower middle market software and software enabled service firms operating with:
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Proven technology and financial model, sustainable competitive advantage; realistic 3-5 year exit strategy; management team with domain expertise; a mid-sized expanding market; and a favorable competitive environment. |
The Fund focuses on software sub-sectors that are both poised for growth and where the operational backgrounds of the General Partners can have a rapid impact on value creation.
Sectors we find attractive given factors such as valuation, growth and potential for consolidation include (but are not limited to):
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Financial Services |
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Content / Data Management |
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Predictive Analytics |
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Storage |
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Wireless |
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Internet Pure Plays |
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Digital Media |
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Software as a Service
(SaaS) Offerings |
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Security |
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Our investment strategy is designed to professionalize portfolio companies with the implementation of best practices, driving efficiency and enhancing growth strategies.
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Drive software sub-sector consolidation through acquisitions which enhance portfolio company technology platform, increase market penetration, improve financial/operating efficiency, and/or expand customer base. |
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Strengthen management team with known industry leaders with demonstrated track records. |
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Improve operational efficiency to yield above average EBITDA margins, improving the likelihood of a profitable exit. |
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Expand and/or refine product portfolio for margin gains, market share increases and/or competitive differentiation. |
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Broaden customer relationships to increase product penetration, expanding within and across relevant verticals. |
TVC is focused on software and software enabled services firms in any of the following stages:
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Development and expansion stage opportunities |
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Leveraged buyouts |
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Recapitalizations |
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Restructurings and related situations |
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