Approach & Criteria
- FINAM Global focuses on mid-sized technology companies with solid business models, strong growth potential and large addressable market.
- The strategy of FINAM Global is to identify and finance fast-growing companies in the TMT sector worldwide, and then help them to unlock value and generate competitive long-term returns on invested capital.
- FINAM Global invests between $1m and $50m in each company for an average period of three to five years before achieving liquidity through a sale to a strategic partner or IPO. We have a strong preference for control positions in our portfolio companies and offer flexible financing structures, including additional share issues and buy-out opportunities.
In evaluating and selecting companies for investing, we pay particular attention to the following investment criteria:
- Market Position. We seek companies with large addressable market and potential to become a leader in the chosen segment.
- Management. To build long term partnership, we back strong and motivated management teams, whose incentives are aligned with those of investors.
- Growth potential. We invest in companies with a clear competitive edge sufficient to scale up rapidly in its target market.††
- Cash Flow and Profitability. Attractive level of profitability and possibility to achieve positive cash flow within a reasonable time frame are important factors in our investment decisions.†
- Control. FINAM Global chooses investments that secure control or a significant minority interest with adequate protective covenants.
- Identifiable Exit Prospects. We appreciate multiple exit opportunities for the proposed investment, either through sale to another investor or IPO.
- IRR. The potential return should correspond to the level of the risk of proposed investment in the context of the Fundís overall portfolio.
© 2016 FINAM Global