How and Where We Invest
We invest in opportunities where we look to drive transformational change. We’re thesis-driven investors. We identify, research, and become educated in the areas we invest. This enables us to deploy capital and resources quickly and with deep conviction. Through our Capvalue™ Framework, we strive to build scalable platforms and drive meaningful business transformation.
We seek out entrepreneur-owned businesses in the software, tech-enabled services, and industrial business services sectors, across multiple industries. We look for businesses that have a tenured team of owners or managers seeking a majority capital partner, with solid financials, a defensive business model, untapped growth potential, and competitive advantages within their market niche. We focus on developing highly profitable, differentiated businesses that can be successful well beyond our ownership period.
Our Thoughtful Approach to Accelerating Growth and Achieving Value
- Perform deep research to identify markets
- Become educated on market dynamics and opportunities
- Identify and establish relationships with key entrepreneurs
- Invest in top talent and technologies
- Deploy industry best practices for growth
- Provide functional expertise for scale
- Develop a long-term strategic roadmap
- Execute buy and build strategy
- Seek to deliver enduring value for customers, employees and investors
Where We Invest
Our software and Software as a Service investments have run the gamut from industrial automation, Fintech, restaurant tech, automotive tech, healthcare revenue cycle, healthcare operations to transportation and logistics, and more.
Tech-enabled services companies have been a mainstay of our portfolio for many years. We have invested in many areas, including insurance technology and services, incentive solution processing, healthcare billing, and industrial monitoring and diagnostic services.
We’ve been an investor in industrial business services since our inception in 1990. We have significant experience in value-added distribution (fabrication, technical sales, assembly, and logistics) and industrial services (maintenance and repair).
Industries We Invest In Include:
The operating models of healthcare providers and payers are being transformed by technology. We look to invest in business-to-business models that enhance operating efficiency and efficacy for providers (hospitals, ambulatory, and outpatient services) and payers in the areas of compliance, revenue cycle management, and practice management software.
With several recent investments in the automotive technology sector, we’re a thoughtful partner for innovative, growing businesses that are helping transform dealer operations. Within the automotive tech landscape, we target solutions that enhance sales, marketing, finance and insurance, and service lane operations for automotive dealerships.
The complexity of the transportation and logistics sector and the fragmentation of current technology solutions create a rich environment for us to invest alongside innovative businesses that are seeking to solve these challenges with technology in a more integrated fashion. We target several areas within supply chain tech, including track and trace technology, TMS, WMS, e-commerce and omnichannel, procurement software, and supply chain analytics.
The insurance industry is undergoing a rapid digital transformation that allows more efficient risk management and underwriting processes, and wider and more targeted distribution to customers. Within Insurtech, we look for technology-enabled services and software businesses that enhance carrier operations, including digital sales enablement, underwriting, service and administration, and claims management.
Capstreet has identified construction as an industry where we believe technology can drive transformational changes in efficiency and project delivery. The industry is still early on in its technology adoption curve, which we believe creates a ripe environment for growing, innovative software and technology businesses. Capstreet targets software businesses that enable the critical areas of project and financial management for general and sub-contractors.
Capstreet is actively seeking investments in outsourced services and technology solutions that help retail businesses in multiple sectors more efficiently manage both their back and front-end operations. We have helped businesses in executing integrated payments strategies with vertical-focused POS solutions. We believe retail is being rapidly transformed by technology in a very similar fashion to the hospitality industry and requires integration with digital tools to meet consumer requirements as well as better use of technology to drive operational efficiency.
Capstreet has a long history of growing businesses that provide critical services to industrial facilities and a successful track record of identifying industrial distribution niches where businesses can drive profitable growth through consolidation and leverage the benefits of scale. We also employ our technology and software operating expertise to bring unique efficiencies to industrial business models.
We believe the provision of hospitality and foodservice is yet another industry that is being rapidly transformed by technology as consumers increasingly leverage electronic mediums either to order, manage, track, or pay for their services. We also believe the sector is highly fragmented and experiencing rapid innovation, which provides the ideal scenario for businesses to benefit from our Capvalue framework to rapidly accelerate growth.
Fintech is an area of active focus for Capstreet, particularly in the areas of credit, compliance, and payments. We believe software and technology solutions will continue to transform both b2b and b2c finance over the next decade. Through deep research and several successful investments, Capstreet has developed a strong track record of helping smaller and mid-sized businesses navigate this complex landscape to grow both rapidly and strategically.
What We Look For
- Entrepreneur, family, or employee-owned businesses
- $3 to $15 million of EBITDA
- Software, Tech-Enabled Services, and Industrial Business Services
- Primarily majority investments
- Entrepreneurs reinvest alongside Capstreet
- Ability to apply the Capvalue™ Framework