Investment Criteria

Exclusive Focus on Sustainable Energy & Industrial Innovation

Activate invests thematically at the intersection of sustainability, technological innovation and large industrial end markets. With over 80 years of collective experience investing and operating companies at the nexus of these themes, the Principals bring value and insight to the companies with which we partner. Specifically, Activate targets companies addressing fundamental challenges in the following areas:

Energy & Power - Transforming energy markets by enabling intelligent, distributed networks of smarter and more efficient consumption while shifting towards low carbon generation solutions.

Transportation & Mobility - Building connected mobility and logistics infrastructure to move people and goods more efficiently and sustainably.

Industrial IT & Systems - Revamping industrial environments, production processes and traditional supply chains with advanced informatics and software, smart machines, robotics and automation.

The transformation of each of these sectors is being facilitated by a convergence of enabling technologies which have become broadly economical with scale, and by business model innovations which are driving faster adoption of technologies by commercial end users. Activate targets companies in our focus sectors that are leveraging unique and defensible IP across the following technology trends:

  • New Energy - Distributed Generation, Energy Storage, PVS Coupling, Intelligent Buildings and Cities, Infrastructure Upgrades

  • Software and IT Systems - Cloud, Deep Data, Predictive Analytics, Machine Learning/AI, Asset Visibility and Cyber Security, Sensors and Automation, Robotics and Drones

  • Modern Transportation - Electrification of Everything, Wireless Everywhere, Traceability and Tracking, Autonomous Vehicles, Consumer Behavior Modification

  • Financial Innovation - Distributed Ledger (“Blockchain”), Value-Add Technology Financing (“Capex-to-Opex”), Energy Pricing Paradigms and Customer Billing Engagement

Investment Profile

Activate invests between $10 and $30 million per transaction and can lead or participate in larger syndicated deals. We target companies with between $5 and $100 million of revenue, that are at or near an inflection point of rapid growth. We look for companies poised to become market leaders with significant impact in their sectors.

Management

We look for entrepreneurs and management teams driven to build industry leading companies that transform markets and the world we share. This requires unwavering passion to the company’s mission, deep domain expertise to make that vision come true, and a work ethos that will not accept anything but the very best effort. We look for teams that want more than just capital, as we take a collaborative, partnership approach to building companies. Passion, Vision, Integrity, Honesty, Drive, Unwavering Determination & Resiliency are the hallmarks of great companies and teams.

Investment Scenarios

Activate is a growth equity investor and we seek to deploy capital to accelerate a company’s growth, as opposed to providing liquidity for existing shareholders. However, we are highly flexible regarding deal structure and are comfortable operating in both minority and control positions.