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Aleutian's Technology Industry Specialization
 Aleutian Capital is well positioned to conduct buyouts and make growth capital investments in information technology companies, and is one of a small number of private equity firms with a specific focus in the sector. Led by Rishav Gupta, the firm's IT practice seeks enduring companies in hardware, software, business services and staffing sectors of the industry.
Our expertise in IT and ability to add value to technology companies is derived from our principals' experience owning and operating IT companies, board memberships in visionary companies such as vault.com, and investments such as Aleutian's equity holding in Karmaloop.com.
Ideal target companies have an established customer base and focus its products or services on one or a few related horizontal business processes or industry verticals. Direct customer relationships are highly preferred for business services or staffing providers. Additional investment criteria include:
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Investment Criteria
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Revenues between $5 and $150 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $1 million (minimum 15% EBITDA margin)
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In business of providing same or similar products/ services for at least past five years |
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Positive cash flow for each of past three years |
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Diversified customer base; low customer concentration |
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Employee turnover equal to or lower than the industry standard |
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Opportunities for growth (e.g., geographic expansion, product / service enhancement, outsourcing / offshoring, etc.) |
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Experienced and knowledgeable management willing to stay for at least two years post transaction |
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Defensible market position |
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Aleutian is a late stage investor, and tends not to invest in companies with less than $1MM in EBITDA in any of the past three years. We also avoid businesses with heavy reliance on experimental technologies or few key individuals.
We pay market rate valuations for technology companies we acquire, with EBITDA multiples commensurate with size, opportunities for growth, sustainable competitive advantages, and risk profile.
Aleutian differentiates itself by being actively involved in businesses acquired without being intrusive. Our size, relationships, industry focus and deep domain knowledge allow us to foster customer / vendor partnerships and create opportunities otherwise difficult to cultivate, enabling management to continue the execution of overall business strategy and growth initiatives.
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