Our Investment Approach
Executive Summary
Winterthur Search Fund was formed to identify, acquire and operate existing private companies with initial enterprise value between US$5.0 and US$40.0 million. The purpose of the search fund is to provide investors with the opportunity to participate in the staged financing of the search for and acquisition of an existing private company. Search funds have been in existence since 1984 and have been structured to mitigate many of the risks associated with purchasing a small business.
-
Approach
Winterthur excels at helping you navigate the journey of scaling your business. We can facilitate equity commitments of US $5 to 50 million for growth, minority recapitalization, and buyout transactions.
-
Business Characteristics
Above average growth
History of profitability
Fragmented with lack of dominant players
Immature market technology penetration
Favorable in terms of Michael Porter’s 5 Forces
Acceptable risk level (e.g. regulatory risk, technology risk, environmental risk)
-
Technical Support
The information and communications technology industry is undergoing rapid advancements. Our network of technical advisors help guide our businesses towards success. We draw technical advisors across industry verticals and geographic regions to customize support to your specific requirements.
-
Long-Term Growth
Our primary focus is to invest capital for long-term appreciation. Accordingly, we take a patient long-term approach to build lasting value for stakeholders. In every transaction, we seek to forge career-long relationships with our portfolio business managers.
Target Investment Opportunities
Winterthur Search Fund will target opportunities located in ICT and information security sectors that are currently experiencing a trajectory of growth and ideally possess the following attributes:
Financial
Recurring and contractual revenue streams Annual revenues over $5.0 million
Annual EBITDA over $1.0 million or > 15%
Cash flow positive for three years
Low cyclicality
Low ongoing capital expenditure needs
Industry / Sectors
High organic growth potential
Developing or emerging markets
Low risk of adverse regulatory changes
Low risk of technological obsolescence
Moderate to high risk barriers
Business
Private and concentrated ownership
Opportunity for Winterthur Search Fund to add value
High operating leverage
Technology inefficiencies
Geography
High-Growth Developing & Emerging Markets
Middle East & North Africa (MENA)
Central America / Caribbean
Southeast Asia
Central Asia
Interested in learning more?