Kitara Capital will look for the following criteria from their investments:
• Identify investment opportunities in economic downturn or perhaps early stages of an upturn and hold the investment until the company has reached its full operating potential and its market valuation is fully reorganized.
• Medium – sized business across various sectors and geographies that are both publicly traded and privately held.
• These businesses would generally be in the growth stage of their cycle and are in need of growth capital.
• The business and/or the promoter should have the track record and experience in the specified industry.
• Significant ongoing founder / promoter commitment and management influence.
• An investment size of US$ 2 million to US$ 4 million in the fund mode, US$10 million to US$15 million in direct deals.
• Investment horizon of medium to long term to take full advantage of business cycle and operating efficiency.
• These companies often hold the considerable growth potential as they have a proven track record and are now looking to expand – these are the companies that have the potential to become industry leaders.
• Potential to generate ‘exceptional returns’ by buying early and holding for relatively longer periods.
• Historically holds the most room for outperformance.
