Page 169 - TACC 2023 Program

Vertical Software

We invest in companies that provide software to niche vertical markets.
These companies have a deep understanding of their customers’ unique
needs and an offering that is difficult for competitors to replicate.

End markets of particular interest include:

E DT E CH, F RE I G HT T E CH, G O V T E CH, I NS URT E CH

Company attributes we look for: Investment Criteria:

• Products and services that are highly tailored to • Interested in both majority recapitalizations and minority
a unique end-market growth investments
• Deep integration into the customers’ ongoing Buyout Check Size: $50 - $150 Million
business operations Growth Equity Check Size: $5 - $50 Million
• Strong unit economics • $5 Million+ ARR

• Innovative and efficient means for growing existing • Strong Gross and Net Retention
customers and attracting new ones
• 70%+ Gross Margins
• Intuitive, customer-driven product or service • Sustainable and Efficient Unit Economics
development pipeline
• Highly Capital Efficient
• Capital efficient business model

Representative Investments

Contact

Aaron Clark Ryan Morrow Stephens Group, LLC
Managing Director Principal 100 River Bluff Drive, Suite 500
501-377-3765 501-320-0575 Little Rock, AR 72202
[email protected] [email protected]