Private Equity

Our investments span a wide range of industries around the world in established and growth-oriented businesses alike. Playing a vital role in helping mostly IT companies realize their growth potential, we uncover value by identifying great companies and enhancing their performance by providing patient capital and operating support to strong management teams. Our approach helps our portfolio companies grow core businesses, launch new initiatives, make transformative acquisitions and support long-term strategy.

Investment Philosophy

Investment Profile

Tom Street’s investment size has historically ranged from $1 million to over $10 million in equity capital. Our investment committee process for vetting transactions and continuous expansion of best practices enables us to offer value on larger transactions and funding below this range. Our target investments are typically IT services businesses that are immensely profitable but due to excessive infrastructure costs or tremendous accounts receivable wait-time burden have not been able to focus on the big picture. In most cases, we are the majority shareholder and the only outside investor. This reduces the distractions commonly associated with having multiple financial investors and permits us to take a differentiated, long-term perspective. We are flexible and creative and pursue investments using a variety of transaction types.

Collaborative Partnerships

Tom Street provides a strategic and operationally-focused investment with the goal of adding meaningful, sustainable value to each company within our portfolio. In addition to investment capital, we offer our portfolio companies access to proprietary best practices and an extensive relationship and mentorship network. What sets us apart is our philosophy of working closely with management teams at the outset of each investment to reach a common understanding of business goals, develop the appropriate performance benchmarks, and implement proven best practices. Together, we aim to build some of the very best companies leading the technology sector today. We provide a tailored approach to adding value for each of our companies; we provide strategic, operational, and financial expertise.

Industry Focus

Tom Street has focused on the enterprise software and information technology services industry since our founding. We look for opportunities to build and grow sustainable, successful businesses in our target markets. We seek companies that provide software solutions and technology services to Fortune 500 companies through proprietory training programs for in-house employees, modeling specialized software solutions to enterprise clients leveraging multi-disciplinary expertise to create a sustainable technology-enabled service. We believe there are various elements to the software business model that can create a differentiated, scalable, and highly profitable business. Identifying specific companies that can be transformed through the implementation of operational best practices and turned into predictable, high cash flow businesses is key to TEP’s target selection.

Why TEP-PE

Strategic analysis and guidance
Implementing operational best practices
Developing key performance indicators
Financial planning and budgeting
Evaluating and executing M&A
Industry research and competitive analysis
Establishing partnerships and alliances
Talent and performance management

TEP Investment Criteria

Existing or potential recurring revenue

Mission Critical solutions and Strategies

Experienced management team

Favorable customer characteristics

Defensible competitive position

Favorable market dynamics

Strong customer value proposition

Driven by Analytics, executed with heart

Transformational operating improvements

We actively target companies in which significant value can be created through clear strategic and operational change, and created our Portfolio Operations Group to provide hands-on support to help our portfolio companies become more productive, efficient and valuable. Once a company joins the portfolio, we help management craft a plan to reach their full potential over the long term, and provide assistance as they put this plan into practice.

Tom Street IT-PE Approach

Our private equity strategy offers a combination of financial, management, and intellectual capital to bring lasting value and sustainable growth to our companies. We set companies up for success by offering proven best practices and unique insights from a community of technology professionals and executives who understand the opportunities and challenges within the industry. This approach equips our companies with the resources they need to achieve their vision for their businesses. Our sole focus on the information technology services enterprise software industry means that we are unrivaled in terms of experience and know-how. We ensure that a company can maximize the expertise of our network to achieve operational excellence, sustainable growth, and financial returns.