Identifying Opportunities
the European Opportunity. Europe's sophisticated mobile telecommunications market has spawed a generation of small-and-medium-sized companies at the forefront of wireless, software, smart cards and content generation, and has scored maor successes through compagnies such as SAP, Sage, CSR, Dassault systems, Wavecom, Business Objects, Gemplus and Ilog. The combination of a new generation of skilled IT workforce justifies our focus on Europe.
The Information Technology Opportunity. The IT sector is recovering from a severe downturn in the late 90s due to overinvestment in networks and in non-sustainable nusiness models, and is now experiencing a new cycle of innovation and growth. The volume of venture funding is now back to pre-bubble levels, and investors stand to benefit from attractive valuations and limited competition.
The Private/Public Partnership Opportunity. Across Europe, local governlents are implementing a new generation of industrial policies aimed at supporting local development in innovative SMEs and helping the growth of European leaders in key industries.
The liquidity Opportunity. Occam is focused on the identification of undervalued assets inside existing portfolios or within large corporations.
The consolidation Opportunity.There is a rich set of expansion-stage IT compagnies in Europe, with over 400 medium-sized public companies and many potential spin-offs and private companies.
Focusing on the IT industry
Occam strategy is predicated on the growth of the software-driven IT industry. Occam's partners believe Europe has strong capabilities in creating intellectual property that can be monetized in the IT industry, and that, as software is a highly capital-efficient industry, strong returns can be generated for investors by building European software mid-caps with an exit value inthe region $100M. Occam Capital has built deep relationships with some of the key European governement bodies and industrial groups which have already started to funnel a proprietary deal-flow of strategic technology-based assets. Based on recent industry analysis, the software industry will grow to $189B at a CAGR of 6.9% in 2004. Worlwide IT spending amounted to $916 billion in 2003 and is expected to increase at a compound annual growth rate (CAGR) of 6% between 2003 and 2008 to reach $1.2 trillion.
Creating links between Europe and the US and Asia
Occam Capital has built deep relationships with key European investors and industrial groups to create a continuous flow of capital projects to be financed and developed based on the following principles :
Invented and designed in Europe
This model of a Euro-centric global corporation has been successfully demonstrated by companies including Business Objectsn Ilog ans SAP, and will be applied to create the next generation of global IT leaders.
Positioned and marketed in the US
The fund is objective is to help portfolio companies take advantage of its links with silicon Valley to penetrate markets through local presence and/or partnerships and to acquire complementary technologies.
Manufactured and producted in Asia
Occam Capital's portfolio companies will take full advantage of the solid and extensive Asian network the management team is currently building. One of the odjectives of the fund is to help portfolio companies take advantage, where appropriate, of early links Asia in order to penetrate markets via a local presnece and/or partnerships and to acquire complementary technologies.