Private Equity
Investing In Tech Companies Via Smart Assessments
What Are Private Equity Firms?
A private equity firm is an institutional investor that engages in private equity portfolio management and specializes in buying and selling companies.
Private equity funds are pooled investments managed by general partners. These investments are sourced as private capital from limited partners. The collected funds are then invested by the general partners on behalf of the limited partners, typically by taking controlling stakes in companies, thereby effectively acquiring them. As a result, the companies become portfolio companies, or portcos.
The private equity firm subsequently engages in value creation activities in collaboration with the portco executive teams, operating partners (e.g., as board members), and others, to increase the businesses' value. This process sometimes involves combining portcos (e.g., via mergers and acquisitions) to enhance value. The ultimate goal is to sell the companies after a holding period for a profit.
Private Equity Investing in Tech Companies
These days, every company has a technology component present in one way or another. However, one could make the following distinction:
Core Tech Company
A company that actually builds its own software and/or hardware, and the business of that company revolves around that core technology.
Tech-Enabled Company
A a company that uses enterprise tools and their integration (i.e., enterprise architecture) and sometimes bespoke software to automate and streamline its business processes, thereby increasing cost efficiency, for example.
Tech-enabled companies are also sometimes companies that are not offering software solutions, but have bespoke software solutions powering their business.
In both cases, the tech component is crucial for a company's success and requires a good understanding by the private equity firm to engage in fruitful value creation.
At the same time, the complexity of the applied technology in a company can be daunting. To ensure a successful tech investment, we provide private equity firms several technology assessment and value creation services.
If You Are a General Partner, Managing Partner, or a Principal
As a General Partner, Managing Partner, or a Principal you are the highest authority in the private equity firm.
You seek
A clear and uniform set of information to understand revenue health, avenues of value creation, and additional investment requirements
Identifying lucrative prospects, building a strong and versatile portfolio, maximizing your portfolio ROI, and minimizing investment risk
You are challenged by
Limited expertise connecting technology and business
Constant data overload, variety, and inconsistency
Competitive pressure
How Intium Can Help Private Equity Partners and Principals?
At Intium, we’ve developed an evaluation approach standard and built our own software platform to assist our team of highly qualified technical professionals in conducting tech assessments.
Our standard ensures that companies are assessed uniformly, in the same format, and according to the same rules, allowing even apples-to-apples comparison between prospects.
If You Are a Investment Director, Investment Associate
With boots on the ground, you become intimately familiar with prospects and portcos. You interact with investment committees, providing input to the partners making investment decisions.
You seek
Streamlining hands-on execution of investment strategies
Uniform set of information and details to understand how to keep the portco on track to realizing its full potential
You are challenged by
Identifying value-add opportunities early that align with the firm’s long-term objectives
Recognizing specific risks early and on an ongoing basis, tackling issues promptly
Missing the right tech expertise to aid in strategic planning of the portco’s journey
Keeping the asset on track for maximizing its ROI
How Intium Can Help Investment Directors and Associates?
Our platform is inherently connected to business, describing value creation opportunities and risk through the business lens, e.g., via investments required.
Intium’s work products are always geared towards giving you the details necessary for timely actions.