Our investment philosophy emphasizes collaboration with highly motivated management teams. We perform extensive industry research to ensure that investments are made in situations where we can assist management in implementing an operating strategy that will create long-term value. We conduct extensive due diligence on investments to ensure that we understand the opportunities and business issues in advance of making investments, and so that we can agree with management on the broad outline of how value will be created. We align our interest very closely with management, so both successes and risks are jointly shared.

We also strongly support our portfolio companies, providing incremental capital to allow for synergistic add-on acquisitions that will ultimately improve operating results and enhance equity value. In each of our transactions, management makes or retains a significant equity investment in the business. This allows us to align our interests with those of management in order to drive company growth to maximize value.

While our target industries include IT, consumer products and services, media, business services, telecommunications, manufacturing and health care, we will consider investments in other industries. We invest behind management teams we believe are the likely industry leaders over the next five years.

We seek fast growing, emerging markets, where we can invest in a company that has the potential to be the dominant player in a market. In addition, we also look for companies with new products and services that address large existing markets but have the capability of taking market share from current market leaders. We seek management teams with successful track records and domain expertise.

We utilize a proactive approach to generate deal flow. The foundation of our deal generation comes from a combination of aggressive sourcing and a research-oriented approach to the market. We believe a bottoms-up approach is the most effective and successful method for uncovering emerging technologies and explosive market segments.

Typically, a team approach is used in each of our investments. We choose the team with the most relevant experience in a particular market segment to conduct our pre-investment analysis of each company. The same team remains involved post-investment and is responsible for leveraging their knowledge, resources and contacts for our portfolio companies. When we back a company, we work closely with senior management to achieve our shared vision and make it a reality.

Our strategic focus is built upon the concept of a discontinuity - a circumstance or event that disrupts the equilibrium in a particular industry and creates new entry opportunities. Discontinuities are rapid and permanent structural changes in established markets that incumbents, hindered by economics or aging infrastructure, are not able to respond to in a timely fashion.

Compelling market opportunities that can be exploited by breakthrough innovation are created by discontinuities in industry standards, regulations, technology convergence, and distribution channels.