Our fundamental analysis centers on the evaluation of multiple factors, including market size, competitive landscape and relative positioning, quality of the management team, and a robust and scalable business model.
In each case, we narrow our focus to key characteristics which can be discerned and observed over time.
These make up the foundation of our models, which play a pivotal role in validating our investment thesis.
Cheesecake, figs, and pinot noir.
MARKET. We actively seek out large markets poised for growth. Whether it’s a market ripe for disruption or simply in its infancy, we spend time building conviction in the growth opportunity.
COMPETITIVE POSITIONING. We diligently map out the competitive landscape and survey participants to understand the respective value propositions and differentiating factors. This approach allows us to focus on companies which we feel have a strong competitive advantage and are well positioned for market share gains.
SCALABILITY. A robust business model and a path to profitability are paramount. Through our research, we identify the extenuating factors which enable the company to turn on the cash flow and turn off the cash burn.
MANAGEMENT. An outperforming operator is an imperative component of our underwriting process. Whether it be seasoned management or a rising entrepreneur — both of which we value equally — it is crucial that there is an exceptional team in place.
Fundamental research enhanced through quantitative insights
No two companies are the same. However, market environments, industry participants, and transaction structures can, and often do, repeat themselves.
It is important for us, as well as our partners, to be cognizant of the past scenarios which did and did not yield positive results and, even more important, to understand why. Simply looking at publicly available historical deal attributes does not paint the complete picture.
This methodology allows our partners to make more informed capital related choices.
In-house data science expertise brings machine learning and artificial intelligence to the forefront. Our models have undergone several iterations, and are continuously and rigorously tested to ensure our hypotheses remain valid.
Years spent by the CaaS team at the center of capital markets deal flow, combined with our library of both proprietary and publicly available data, has resulted in an evaluation process that facilitates the early identification of evolving trends.
Our in-house quantitative experience and enriched proprietary data set drive our capital markets insights. This, in turn, enables us to focus our search efforts and provide useful market intelligence to C-Suite executives as they prepare to make important strategic decisions.