Investment Criteria
When investing in the technology leaders of tomorrow, CRT Private Equity adheres
to the following criteria:
Management
CRT Private Equity believes that management is a critical component of a
company's success. Therefore, we seek great entrepreneurs with a clear vision
and passion for what they do. Central to the CRT Private Equity strategy is an
active partnership with the management team of our portfolio companies. Our
desire is for portfolio companies to leverage our experience and skill-set to
more effectively build the company.
Market
Significant value can be created when outstanding management teams address real
customer problems in large and growing markets. We believe that the company's
target market must have the size, growth potential, and competitive dynamics
that could result in exponential growth for the company's product or service
offering. In addition, the target market must be able to support margins for
some period at a level that allows achievement of break-even and profitability.
CRT Private Equity seeks to validate these criteria through objective
information gained from customers, prospects, industry sources, and sales
channel partners during the due diligence process.
Product/Service
The product or service should address a significant market gap or problem,
while providing a demonstrable return or payback to the ultimate customer, and
a sustainable advantage when compared to competitive offerings. Ideally, the
product or service will have a significant (usually technology based) advantage
versus the competition.
Capital Efficiency
We believe that the disciplined deployment of financial resources to obtain the
most "leverage" is critical for investment success. CRT Private Equity seeks to
be in business with entrepreneurs who understand or have demonstrated an
ability to manage cash, and have a clear understanding of the strategic and
operational path to break-even and profitability. We prefer to see this through
superior execution rather than the sole reliance on additional financing.
Opportunity for Substantial Financial Return
CRT Private Equity seeks investments that offer attractive returns. Compelling
business economics, with manageable levels of risk, over a reasonable time
horizon are central to obtaining an attractive investment return.
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