Third Security targets relatively few investments in a highly select group of companies. Our patient approach is focused on maximizing absolute return, which we believe often correlates to larger benefits to society.
Our selection process is non-formulaic, and our selections do not fall into a preconceived matrix. Some are large, and some are small; some public, some privately held. We believe they have an uncommon advantage: each is selected for a strategic position in its field with the potential for both category dominance and financial return.
These target companies are then monitored by a dedicated, deeply experienced team committed to aggressive results for our Affiliated Investment Funds.
Some common elements of attractive investment opportunities:
Unique value: We seek companies that can carve out a unique space for themselves, whether by protectable intellectual property, a significant lead time on the competition, high barriers to market-entry, market presence, strong relationships with customers, etc., novel approach, location, or position. One of our first questions in evaluating an opportunity is, "What makes this uniquely yours?"
Entrepreneurial execution: It takes more than a great idea to build a successful business. It takes an execution-oriented entrepreneur and management team to capitalize on the opportunity's advantages while avoiding pitfalls and distractions. Proven ability to execute focused plan figures very highly in our evaluation process.
Market leadership: There are a lot of good opportunities out there. We believe that with a good concept and a good team, a company should lead its market. We approach each investment opportunity with this in mind, and a company's business plan must outline a realistic roadmap for achieving market leadership.