Partnership Philosophy
At TCV, we partner with management and shareholders of the companies in which we invest to build market leading businesses. We are active board members who provide a variety of strategic advice and support, but leave the day to day operations of our portfolio companies to their management teams.
Uses of Capital
We are very flexible in providing capital in a manner that addresses the goals of management and the shareholders of our portfolio companies. We take both minority and majority positions and provide capital for growth, shareholder liquidity, acquisitions, buyouts and recapitalizations. In addition to our investments in privately held companies we also provide growth and acquisition capital to publicly traded companies in the form of PIPEs.
- Growth Equity – By providing growth equity financing, we enable companies to accelerate growth, fund new initiatives, and strengthen their balance sheets. This enables our portfolio companies to be more competitive and expand their markets and market share. In addition to providing growth equity to privately held companies, we also invest in PIPEs to provide additional capital to publicly held companies.
- Shareholder Liquidity – Founders and other equity holders can diversify their investments, achieve various other estate planning or investment goals, and realize an interim step-up in value through the sale of a minority stake to TCV. Shareholder liquidity transactions allow founders and other existing shareholders to unlock value that has been built to date, while continuing to share in the future value that is created.
- Acquisition Financing – We provide financing to both our existing portfolio companies and new companies to facilitate the acquisition of complementary companies that expand their product offerings, broaden distribution channels, expand their market, or generate significant operating synergies. By providing financing for these types of acquisitions, TCV helps companies achieve scale and market leadership more quickly than they would be able to do solely through organic growth.
- Buyouts – We partner with strong management teams to provide liquidity to existing shareholders while allowing management to continue to operate the business and share in its future growth and value that is created through their partnership with TCV.
- Recapitalizations – Recapitalization transactions allow companies to optimize their capital structure either through paying down debt or transferring ownership from existing shareholders. By providing recapitalization financing, TCV helps companies increase cash flow and strengthen their balance sheet through debt reduction as well as realizing the benefits of partnering with a value added investor.
The TCV Difference
TCV has a number of core strengths that differentiate us from other investors:
- Technology Focus – Since inception, we have invested solely in information technology related businesses. Because of our exclusive focus, we have developed deep domain expertise and market knowledge in the sectors in which we invest.
- Crossover Model – We are long term investors who partner with and support our companies over extended periods of time. Our crossover model enables us not only to invest in our companies during their private financing rounds, but also to continue to invest at the IPO and beyond. As a result of our successful crossover activity, we have a deep understanding of the public markets.
- Active Partners – We are active partners, working alongside management to help our companies to maximize value. We are very engaged at the Board of Director level as well as providing our companies with additional support including the sharing of our vast industry knowledge and expertise, helping to make customer and partner introductions from our extensive network, and working to recruit additional members for management teams and boards of directors as needed.
- Large Capital Base – With $7.7 billion under management, we have the resources to provide our companies with additional financing to meet their ongoing needs whether for growth or acquisition capital. We have also provided funds for additional shareholder liquidity in companies where we already hold a position.
- History of Success – Since its founding in 1995, TCV has established itself as one of the preeminent technology investors. We have invested in over 160 companies and helped guide those companies through over 40 IPOs and over 25 companies through strategic sales. This deep knowledge of the IPO and sale process enables us to provide valuable strategic advice to our portfolio companies. We are patient, long-term investors who continue to support our portfolio companies through various market cycles in order to maximize value for all shareholders.
- Highly Respected Investors – Our reputation is one of our most important assets. As a result of our success as investors in both privately-held and public companies, our investment is an important validation for public markets as well as within the technology universe.
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