Investment Clusters
We focus on large and growing investment opportunities across our markets, organizing them into investment clusters. This allows us to look beyond sectors and across markets, enabling serial specialization. Within each cluster, we look for companies that can establish meaningful competitive differentiation and defend that advantage over time. Our two largest clusters are Emerging Internet and Niche Financials.
Emerging Internet
We focus on marketplace model businesses, which tend to grow stronger as they gain scale and widen their core competitive advantages over time. This also provides a foundation for expanding into adjacencies, providing for durational growth.
We look past simplistic open-ended growth stories to focus on the unit economics of rapidly developing internet businesses. All growth is not created equal. We seek businesses that show evidence of superior customer captivity, pricing power, and organic growth in order to back management teams going after large market opportunities.
E-Commerce | Digital Payments | Online Listings
Online Gaming | Social Networks
Niche Financials
We look for specialized businesses that have a proven advantage in generating assets, a stable liability franchise, and management teams with proven execution across credit cycles.
We focus intensely on return on assets and return on equity as measures of financial health. We spend an equal amount of time understanding a company’s ability to acquire and engage customers, and to grow with them over time.