We like companies that are benefiting from strong sector trends, have scalable business models, and will benefit from our experience, expertise and capital. Serent currently manages nearly $2 billion in committed equity capital and typically invests in businesses between $20M to $150M of Enterprise Value.
Serent invests in great businesses with exciting growth prospects. Our investment approach is to identify sectors with robust growth, and then to invest significant time and resources researching those sectors to identify attractive business models. We focus predominantly on services businesses, particularly ones with moderate to light capital intensity, requiring limited capital expenditures. We also look for companies at key inflection points, where they can benefit from our experience and expertise in business building.
We like businesses that operate in sectors that are undergoing significant change, with dynamics that create or expand a market opportunity beyond what has been available historically. Examples include sectors that are benefiting from strong demographic trends, from shifting distribution, sourcing, or staffing models, or from technology enablement.
SCALABLE BUSINESS MODELS
We like emerging new businesses that have developed a “secret sauce” in the form of capabilities, resources, proprietary content/information, or other types of intellectual property. Typically, this secret sauce is delivered in the form of a service and has subscription or recurring revenue. These services benefit from increasing scale, which helps establish a sustainable and defensible market position.
OPPORTUNITY TO BUILD BUSINESSES
We prefer to invest in companies that will benefit from the experience and expertise of Serent’s principals in business building. We believe that by partnering together, we can build great companies and earn great returns.
We are open to buying businesses where an owner may not want an active role going forward, and we are very comfortable working with those owners and companies to ensure a smooth and successful transition for all parties.