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?

Request a Private Placement Memorandum