Cerium Technology has created a unique and scalable process to find and evaluate opportunities for investment, design and execute investment transactions, create value with sound strategic and tactical direction, and generate extraordinary returns.
We focus on technology companies that research and develop proprietary technology solutions and either license it to their customers or leverage
it internally to create a technology-enabled service. The value proposition of these technologies will be targeted to increasing revenues,
decreasing costs, or mitigating risks within any of three target sectors.
Energy sector companies create and market technology for producers,
transporters, processors, traders, and consumers of crude oil, natural gas,
natural gas liquids, coal, refined fuels and electricity.
Internet of things
IoT sector companies create and market technology for systems that
incorporate sensors, data aggregation, artificial intelligence, machine
learning and physical actuators to create unique value propositions.
Capital markets sector companies create technology for market participants
in equities, fixed income, currencies, and commodities.
Our evaluation of prospective investments looks for companies that have potential for profitability, differentiation, and scalability. Common attributes of ideal targets include existing or potential recurring revenue, mission critical importance to the customer, dedicated management team, attractive customer attributes, compelling customer value proposition, defensible competitive position, and high profitability potential.
Our investment size ranges from $500,000 to $20 million.
Development of best practices among portfolio companies allows us to quickly evaluate the potential of investments in this range. Our target investments are typically in an early stage of their lifecycle, and show potential for both significant revenue growth and profitable operations. We invest as either majority or minority interest and take an active role on the board of directors.
Our transaction structure is flexible, include management and/or leveraged buyouts, growth financing, acquisition financing, or recapitalizations.
Cerium Technology believes in making decisions based on maximizing the
long-term success of our companies. We seek to make strategic investments
that will take several years to create tremendous value appreciation.
Our long-term focus is predicated on the belief that decision making focused
on short-term outcomes often comes at the expense of long-term value
creation. Having a patient and interested shareholder allows management to
make the right decisions for the business, rather than focus on what is best
for the current quarter or for near term results. Long-term value creation is
achieved through solid business execution, continuous improvement, and measuring and rewarding performance against key metrics.
This performance is achieved through hard work and deliberate effort, and we search for management teams with a similar focus on long-term value creation through operational excellence.