Value Creation Approach

Luminate Capital Partners has created a unique investment strategy based on practical application of the strategic and operational levers necessary to build great companies. We believe that establishing successful enterprise software and software-enabled services companies is hard work. True value creation requires an approach to challenges such as scalable growth strategies, execution and the core business model rather than merely relying on cost reduction. We also believe that every company should strive to achieve operational excellence, as measured not only by revenue growth, revenue quality and margins but product quality and customer satisfaction.

We target companies that have satisfied customers who are using products that work and have a distinct value proposition. Companies with these advantages face many challenges to building a better company. While there are differences in the specific issues a company faces, there are often many common themes. The software company that has grown to $20-$30 million in revenues faces many different ideas on how to grow to $100 million. Many of these companies need to complement their product lines so they can leverage their sales and marketing investment and increase the lifetime value of a customer. They need a robust go to market strategy to sell to their customer base, segment their markets, build distribution channels, gain market share, and expand into new segments and geographies. Additionally, they need to do it with an operating discipline that drives improved profitability over time. They need to hire teams to do this and compensate them in a way that aligns with investor goals. We can help companies achieve these objectives.

We create value by using our experiences to select the top three to five opportunity areas among the hundreds of choices that a company faces. Then, working with the management team to execute pragmatic solutions that help build a better business, we relentlessly focus on the value creation strategy. Our operating experience addressing organic growth strategies, acquisitions and integration, planning and budgeting and product strategy help us complement the strengths of a company and the management team.