Corsica

INVESTMENT STRATEGY

At Corsica Capital Partners, our investment strategy is centered on identifying and nurturing innovative companies poised for growth and sustainability. 

Overview of the Investment Process

  • Sourcing and Screening: Corsica Capital Partners sources and screens potential investment opportunities through a variety of channels, including industry conferences, networking events, and industry publications. Potential investments are screened based on their alignment with the firm’s investment thesis, market potential, competitive landscape, and management team.
  • Due Diligence: Once a potential investment has been identified and screened, Corsica Capital Partners conducts comprehensive due diligence to evaluate the investment opportunity. Due diligence typically includes a review of financial statements, market research, competitive analysis, and meetings with management and key stakeholders.
  • Investment Decision: After completing due diligence, Corsica Capital Partners presents the potential investment to its investment committee for review and approval. The investment committee evaluates the investment opportunity based on a variety of factors, including alignment with the firm’s investment strategy, the potential for growth and profitability, and risk management considerations.
  • Value Creation: After an investment is approved, Corsica Capital Partners works closely with the portfolio company to create value through operational improvements, strategic initiatives, and financial management. The firm provides guidance and support to the management team to develop a strategic plan and to identify key areas for improvement.
  • Monitoring and Reporting: Throughout the investment period, Corsica Capital Partners closely monitors the portfolio company’s performance and provides ongoing support to the management team. The firm provides regular reports to investors, including updates on portfolio performance, investment activity, and industry trends.
  • Exit: Corsica Capital Partners aims to exit its investments within a certain timeframe, typically three to seven years. The exit strategy may involve a sale to a strategic buyer, an initial public offering (IPO), or a secondary sale to another private equity firm. 

Investment Criteria:

Corsica Capital Partners focuses on investments ranging from $3 million to $25 million, with flexibility for larger investments in specific cases. The firm seeks companies with robust growth potential and a proven business model, providing capital to fuel growth initiatives, strategic acquisitions, and operational enhancements. They primarily target companies in the growth or mature stages, exhibiting a track record of revenue and earnings growth. Additionally, early-stage companies with innovative technology, a strong management team, and a clear path to commercialization may be considered. Corsica Capital Partners prioritizes investments in companies with a competitive edge, strong leadership, and a well-defined growth strategy.

Overview of the Investment Process

At Corsica Capital Partners, the heartbeat of our success lies in our well-defined investment process. Crafted to identify, analyze, and cultivate innovative companies that stand on the brink of growth and sustainability, our approach is rooted in a commitment to excellence and responsible investing. Our investment process kicks off with a strategic screening of potential opportunities. We evaluate companies based on criteria aligned with our responsible investing principles, industry focus, and geographical considerations. It ensures that every investment aligns with our core values and holds promise for both financial success and positive impact.

criteria for evaluating investment opportunities

  • Market Opportunity: We thoroughly assess the size and growth potential of the target market, examining the competitive landscape to gauge long-term growth and profitability.
  • Competitive Advantage: Evaluating the target company’s competitive advantage is paramount. This includes analyzing proprietary technology, unique products/services, and barriers to entry.
  • Management Team: Our evaluation extends to the management team, considering their experience, track record, and alignment with our investment philosophy.
  • Financials: We meticulously review financials, including revenue, earnings, and cash flow, to gauge performance and growth potential.
  • Growth Potential: Assessing growth opportunities is crucial. We analyze a company’s potential for expansion into new markets, development of products, and execution of strategic initiatives.
  • Sustainability: Environmental, social, and governance (ESG) considerations are integral. We evaluate a company’s commitment to sustainable practices, responsible sourcing, and community engagement.
  • Risk Management: Our assessment includes a thorough review of a company’s risk management practices, from cybersecurity to regulatory compliance and supply chain management.

Types of Transactions

Growth Equity: 

Corsica Capital Partners invests in companies with proven business models seeking expansion or market entry. They take minority stakes, collaborating with management to support growth initiatives and enhance operational efficiency.

Buyouts: 

Corsica Capital Partners acquires controlling stakes in companies demonstrating strong growth potential and a track record of revenue and earnings growth. With a larger capital commitment, they work closely with management to drive strategic initiatives and operational improvements.

Venture Capital: 

Corsica Capital Partners invests in early-stage companies with innovative technology and a clear path to commercialization. Taking minority stakes, they assist management with guidance, product development, commercialization, and growth support.

Value Creation Strategy and
Post-Investment Support

Upon investment approval, we collaborate closely with portfolio companies to drive value through:

  • Operational Improvements: Optimizing supply chains, cost-saving initiatives, and production processes.
  • Strategic Initiatives: Supporting growth through market expansion, strategic acquisitions, and new product lines.
  • Financial Management: Guiding financial modeling, forecasting, budgeting, and cash management.
  • ESG Integration: Working on sustainable practices, reducing carbon footprints, and engaging with communities.
  • Human Capital Development: Assisting in leadership development, training programs, and succession planning.
  • Monitoring and Reporting: Throughout the investment period, we closely monitor portfolio performance and provide ongoing support to management. Regular reports keep investors updated on portfolio performance, investment activity, and industry trends.
  • Exit Strategy: We aim to exit investments within three to seven years. Exit strategies may include sales to strategic buyers, initial public offerings (IPOs), or secondary sales. We work closely with portfolio companies to prepare for successful exits, maximizing value for our investors.