Private Equity

Companies select Sub-Four due to our firm’s deep sector expertise, demonstrated track record, partnership-oriented approach, and proven strategic sales and marketing capabilities. We bring our skills and experience to each of our investments and use them to help our portfolio companies scale more efficiently by transforming their go-to-market strategies, which leads to revenue growth.
Our approach is rather simple: invest in strong founders and established software companies whom we feel have a dominant market position, sustainable competitive advantages, multiple avenues of growth, stable, recurring cash flows, low capital expenditure requirements, favorable industry trends, and multiple areas to create value.

Working in close concert with management teams, we seek to reposition, rejuvenate, and grow software businesses. With an intense focus on corporate strategy, operational excellence, and financial performance, we leverage our network, resources and experience to help build value for customers, employees, and shareholders.

In summary, Sub-Four adds value is in two ways – organically by focusing on sales and marketing and inorganically by executing targeted M&A activity. We help our portfolio companies define the right balance between these two growth strategies, identify acquisition targets and create frameworks, sales models and integration plans to execute each in support of clearly defined outcomes.

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Chris
LaCour

Partnering To Build Outstanding Software Businesses

We offer much more than capital for software companies by providing pro-active, hands-on support in sales and marketing.

Overview

Sub-Four’s private equity group is focused on growth capital investments and buyout opportunities in Enterprise Software and B2B SaaS companies. Our team of dedicated investment professionals work closely with the in-house Reseller business unit and current portfolio companies to identify future growth capital investment opportunities, so we may add on other synergistic acquisitions and then sell the company within a few years.

Our Investment Approach

Whether Sub-Four is a minority or a majority investor, we partner with owners and management teams to build outstanding businesses.

We focus on profitable business with strong management teams and proprietary software products.

We take a long-term approach and provide flexible financial structures that are driven by your objectives.

We invest in Enterprise Software and B2B SaaS companies.
Our firm’s extensive international team invests in companies across North America, Europe and Asia, providing access to a broad global network of resources.
Our investments range from $70 – $500 million in equity and $10 – $50 million in subordinated debt transactions that value businesses generally from $100 million – $3 billion.
We are a long-term, patient growth investor looking to build value over time, with a holding period that has averaged more than 5 years.
We partner with profitable, growing Enterprise Software and B2B SaaS companies with an identified opportunity to grow organically and/or through acquisitions.
Our capital is commonly used to provide liquidity to shareholders, working capital for growth and/or financing for acquisitions.
We take minority or majority positions typically ranging from 15% – 90%. We are always an active, value-added investor, generally working with management on key objectives at the board level; whatever ownership position, we leave the day-to-day operations to you.

We use leverage judiciously and, when needed, offer flexibility in capital structures through access to Sub-Four’s captive subordinated debt.