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, some are small; some public, some privately held. What we believe they have in common is 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 competition, high barriers to market entry, market presence, strong relationships with customers, or a 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 a 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 be able to lead its market. We approach each investment opportunity with this in mind, and it is imperative that a company's business plan outline a realistic roadmap for achieving market leadership.