Our Approach

We invest in great businesses, full stop. Backed by some of the world’s most successful operators and investors, we leverage our permanent capital, unique business systems, and years of experience in a multitude of markets to help your business grow and thrive over ultra-long-term horizons.

Long-termism or nothing

We believe that business-building, operating, investing, and customer satisfaction are all most successful—and enjoyable—when thinking in the long-term.

Name a great business that only optimized for the short-term. We can’t either. And yet nearly all software investment firms are focused on maximizing your business for sale in a mere 2-5 years, prioritizing their own economics and ability to raise another fund over the ultimate success of your business and the protection of your legacy, team, and customers.

That’s not our game. We’re not interested in maximizing for an exit in a few years or with an eye towards raising another pool of capital—we aren’t a fund and we’ll never raise a fund. We offer something dramatically different.

Quality over quantity

Simply put, you have our focus and attention. We concentrate exclusively on the rare businesses that have the ability to grow over decades, and endure.

While some investors or buyers see your business as one of many, or as a stepping stone to another fund, we see your life’s work as something to be nurtured, protected and supported with the full focus of our resources.

For us, it’s all about quality, never quantity.

One size fits none

VC and PE firms too often pull founder-controlled businesses into their orbit with a static playbook, which ultimately leaves them irreparably damaged. These firms are tied to rigid playbooks that are designed to maximize returns for the VCs and PEs while materially increasing risk for the individual companies.

This approach leads to a few common outcomes:

  1. Fragilizing the business’ operations.
  2. Amalgamating otherwise strong standalone businesses into a soup with others just to sell the aggregate to another financial investor at a higher price.
  3. Staff burnout and job loss—for the founders and their team.
  4. Highly-structured, often misleading valuations that, when not realized, result in poor outcomes for founders and their teams, and lead management teams to take high-pay-out / low-probability gambles with their life’s work.

At Arcadea, we tailor our approach to each business based on its unique profile from strategy and valuation, to growth expectations and team transitions. Every business deserves a specialized for-that-business approach and that’s what we provide.

The ideal partner

Our ideal partners have the following characteristics:

  • $3-$20mm of recurring revenues
  • Modest (~10%) to strong (~50%) growth
  • Core product suites or high-impact point solutions
  • Founder-controlled, bootstrapped companies
  • Customer-centricity
  • Strong company culture and brand
  • North American, European or Australia & New Zealand headquarters

We focus on majority investments, recaps, and buyouts of founder-controlled, corporate-owned, or lightly- backed companies at a transition point.

Speak to an Arcadea leader