Our approach

We believe there are many incredible businesses that don’t tick the boxes for mainstream private equity, leaving them underfunded. They may be too small or not profitable enough. They may have a complicated shareholder structure or an inexperienced team. For us, these are rough diamonds. We work closely with them to plug the gaps and turn them into the finished article.

What we look for

We invest in UK-headquartered companies, with revenues of £0.5-30 million, with the following attributes:
how we do it

But we don’t need everything to be perfect at the time of investment.

We understand from experience that: the products might need more work; management teams may need filling out; scale may be needed to grow profitability; and sales and marketing operations may still be feeling their way. The business itself might even be in a distressed or turnaround situation.

None of this scares us. In fact, it brings the best out of the Root Capital team. For us, it’s the potential that is key.

How we do it

We invest up to £10m from our own funds into each company in our portfolio and become an involved and active business partner with the long-term aim of very high returns for ourselves and our management teams.

We like to move quickly through the initial deal process, get in a room with management and start the process of planning and building.

Our approach is built on three key stages:

foundation_WHT_NEW

Building the
Foundations

Refining the strategy, making the product best-in-class, and recruiting the right people, into the right places, to do the right things
Acceleration_Icon_WHT_NEW

Accelerating
Growth

Rapid and sustained growth – through world-class sales and marketing supported by strategic bolt-on acquisitions.
escape-velocity_WHT_NEW

Achieving
Escape Velocity

Becoming a market leader and achieving a £100 million+ exit

Sector focus

We invest in businesses with technology or data at the heart of what they do, focusing on the following sectors:
Software

Software

Digital-Media

Digital Media

info

Information Services

Business

Business Services

Out-Sourcing

Outsourcing

We’re also comfortable with special or ‘creative’ situations that require a more entrepreneurial approach to get the job done. This includes retirement sales, buy-and-builds, turnarounds, turn-ups, distressed cases and more.

Get in touch