Our Investment Strategy
Acquisition Model
The Stage Fund specializes in acquiring businesses that are undergoing change in capital structure, strategy, operations or growth and can benefit from our operational and capital approach. We target companies with a core business, products or services, revenue, strong customer relationships, and that have reached a point in their lifecycle presenting an opportunity for transformation.
These companies have typically raised between 10 and 50 million dollars of equity and debt capital. The investment has usually not grown at the expected annual growth rates venture capitalist’s require. Most require annual growth rates for top line revenue in excess of 100 percent year over year. If a particular investment within a typical venture capital firm is not achieving 100 percent, the likelihood of follow-on investments by that incumbent venture capital firm, drops radically. The Stage Fund’s business model does not require 100 percent revenue growth year over year and rather deploys the private equity model.
Preserve Relationships
Our history shows that we acquire companies taking control at all levels, Board of Directors, capitalization, and most importantly, operational and management control. Tough decisions are not made efficiently through committee meetings over months. We have worked efficiently with equity investors and venture lending firms in very technical situations bridging the gap between management and the Company’s equity and debt owners. We help preserve the relationships between these investors when elements of individual funds change and capital becomes limited or unavailable. Venture investing changes, economies move, and The Stage Fund is uniquely positioned to manage through these situations. We constantly challenge ourselves to move faster, smarter and increase returns for all involved.
Act Quickly
The Stage Fund acts quickly. The past has proven that we have completed diligence and signed purchase agreements reaching contractual and closing terms in 72 hours or less. Our EIR’s and group executives can be deployed and actively running a newly acquired investment within 24 hours. Our bench of talent is deep and strategically dispersed which allows us an advantage when time sensitive situations arise.
Due to the reputation and proof of talent within the firm, we are often called upon in crisis situations. In these special situations, it can be compared to the fundamentals of survival and vitals of the investment are checked; Financial, operational and managerial reviews take place. To provide stability during times of chaos is the core operating model of The Stage Fund.