In selecting which projects to invest in we are industry agnostic. We must, however, identify a value-add in order to engage with a company. On average, we are presented with 5 to 10 potential investment opportunities per week. Of these, fewer than 1% are approved by the Investment Committee to be offered to investors.
Our investor base is as diverse as our management team, consisting of global relationships with HNWI and ultra HNWI, family offices, small institutions and endowments. These are trusted relationships which have been developed over a number of years.
We ensure our interests are aligned with those of our investors as we invest in every deal we offer to our clients.
As a measure of total return in a multi-asset portfolio, it is our view that investors of all types are looking to alternative investments as a diversifier of return streams from traditional asset classes.
Alternative investments come in many forms, but from a very broad perspective, they can be classified into two categories, fund Investments and direct investments in private companies.
Fund investments are pooled investment into hedge funds, private equity funds and commodity funds, as examples.
Direct investments in private companies involve specific opportunities based around a predetermined set of preferences.
***Alternative investments contain a higher level of risk than traditional asset classes, are not suitable for all investors, and should be discussed individually on a case by case basis with an investment professional
In pursuing a direct investment strategy, investors are seeking to build a portfolio of private holdings as a compliment to more conventional holdings in publicly traded stocks, bonds, commodities, etc.
Direct investment in private companies is our core focus at TSC and offers several advantages for investors:
- Returns are uncorrelated to traditional asset classes.
- Each investor can pick his or her own portfolio of direct investments according to preference.
- Investments offer the potential for an active role if the investor is strategic and can add value.
- Direct investment in private companies is a more entrepreneurial endeavor.
We look for projects and investment opportunities with differentiating factors – disruptive technology, products satisfying a need, a large addressable market, a strong revenue model, economies of scale and a clear path to exit.
Once we identify a potential project, we follow a rigorous due diligence process to ensure that it is suitable for our investor clients. We perform thorough background research on company founders, management and boards of directors. We undertake an analysis of the company’s capital structure to ensure there are no existing issues and that the business represents sustained viability. We initiate an in-depth assessment of the financial model, existing revenue streams, value proposition, growth projections and the underlying assumptions.