Investment Criteria
Overview
As a generalist firm, Adroit Capital invests in a variety of industries, regions, and company sizes, and, while we invest across the spectrum of bare-bones start-ups to well established companies, our forte for entry remains Series A and Series B rounds.
We typically act as lead or co-lead investor for about half of the deals we do; however, even when we do not play the lead role, our portfolio companies can expect us to be actively involved in contributing to their growth and development.
In our private equity portfolio, we typically make non-control investments early to mid-stage investments throughout North America that will benefit significantly from our involvement. We invest anywhere from $50,000 in a seed deal to as much as $5 million in a later-stage transaction, and typically make follow-on financing. Often times, we will work with a consortium of other investors, as either an agent, intermediary, or direct participant.
When evaluating potential investments, we focus primarily on the quality and experience of the management team. A candidate company's key managers should have a proven record of accomplishment, an exceptional ability to communicate the company's story to various audiences, and a deep commitment to creating value for shareholders. We also look for a strong proprietary position; a large, clearly defined market for the company's products or services; and a realistic, timely exit strategy for achieving liquidity for investors. Since Adroit Capital is an active, involved investor, we seek management teams with whom we can have a true and successful partnership.
Adroit Capital will consider a broad range of investment opportunities, but certain criteria must be met including strong, experienced management. Typically, we look for companies with positive historical cash flow; however, we will consider start-ups if the business proposal is clearly defined.