Investment Strategy
Vertical’s investment strategy has been carefully engineered over many years and is based primarily upon certain basic principles:
- Invest in Mid-Market Industrial Companies. Vertical seeks to invest in or acquire middle market industrial companies with revenues of approximately EUR50 – 250 million. Middle market companies command a dominant share of the European market, with approximately 75% of GDP contributed by companies valued at less than $500 million. In addition, the historical alignment between ownership and management that is common in such companies has resulted in increased private equity opportunities, as third and fourth generation owners seek liquidity or conclude that they cannot compete in a global marketplace without a strategic and financial partner.
- Invest in Small and Middle Market Technology Companies. Vertical also seeks to invest in or acquire small and mid-cap technology companies with proprietary technology, strong management and extraordinary growth opportunities. Vertical has focused its technology activities generally within telecommunications, the Internet and software, which are among the fastest growing of the many technology opportunities available in today’s global marketplace. Geographically, we have concentrated our activities principally in Israel, where we pioneered the explosion of high-tech companies accessing the public markets during the 1990s, and Europe, where we believe there continues to be significant opportunities, particularly in areas where technology companies have lagged behind their counterparts in the U.S.
Investment Strategy
Vertical’s investment strategy has been carefully engineered over many years and is based primarily upon certain basic principles:
- Invest in Mid-Market Industrial Companies.
Vertical seeks to invest in or acquire middle market industrial companies with revenues of approximately EUR50 – 250 million. Middle market companies command a dominant share of the European market, with approximately 75% of GDP contributed by companies valued at less than $500 million. In addition, the historical alignment between ownership and management that is common in such companies has resulted in increased private equity opportunities, as third and fourth generation owners seek liquidity or conclude that they cannot compete in a global marketplace without a strategic and financial partner. - Invest in Small and Middle Market Technology Companies.
Vertical also seeks to invest in or acquire small and mid-cap technology companies with proprietary technology, strong management and extraordinary growth opportunities. Vertical has focused its technology activities generally within telecommunications, the Internet and software, which are among the fastest growing of the many technology opportunities available in today’s global marketplace. Geographically, we have concentrated our activities principally in Israel, where we pioneered the explosion of high-tech companies accessing the public markets during the 1990s, and Europe, where we believe there continues to be significant opportunities, particularly in areas where technology companies have lagged behind their counterparts in the U.S.