Odeon Capital
is interested in funding private and select public growth and expansion
stage companies with established business franchises and solid financial
metrics. While target companies will have achieved certain initial
levels of success, they also will be confronting constraints currently
limiting their potential and which Odeon believes can be effectively
overcome. Odeon investments will average $8 million per company,
and the fund seeks to take either control or significant minority
positions and to obtain board representation or board observer rights
in each company in which it invests.
Business Focus
The Fund's focus
is on investing in rapidly growing companies with strong fundamental
characteristics. These should include a proven operating history,
solid financial metrics, and evidence of the existence of a solid
business franchise. Companies should have:
- A history
of paying customers
- Evidence
of broad-based customer acceptance of existing product lines
- Clear product
positioning and diffrentiation
- Brand equity
- A management
team committed to growth
- Trailing
annual revenues of $5 million to $25 million
- Evidence
of historical growth
- Reached profitability
or be imminently profitable
Constraint Removal
The Fund seeks
opportunities that have one or more of the following characteristics
constraining maximizing the value of the business:
- Companies
that have never taken institutional money before, now looking
for growth capital
- Companies
that have built an initial franchise but have lacked financial,
managerial, or other resources to maximize growth
- Quality businesses
being spun out of larger corporations that have never received
sufficient attention or resources
- Companies
with positive operating results, but whose initial backers lack
the funds to continue to support the business
- High-quality
business units that can be removed from a financially troubled
parent
- Publicly
traded companies with market capitalizations significantly less
than their intrinsic values
Sector Focus
The Fund's investment
focus is in three general areas: enterprise software, outsourced
business services and to a lesser extent, select high growth manufacturing
and distribution businesses.
- Enterprise
Software
- Infrastructure
Software
- Network
and System Management Software
- Storage
Management Software
- Security
Software and Services
- Supply
Chain Management Software
- Business
Application Software
- Outsourced
Business Services
- Business
Process Outsourcing
- Select Manufacturing
Businesses
Situations for Building
Value
Odeon has identified
three situations in which this investment strategy is most applicable:
- Growth capital
for business expansion, to grow existing, successful product lines,
add new product lines, invest in expanded sales and marketing
efforts
- Growth capital
for companies in transition, to expand beyond a lifestyle or family
business to a fast growth track business
- Growth capital
for financial restructurings, for companies with strong core products
but high debt loads, or "orphaned" subsidiaries or divisions
of a parent company
