WCAS targets approximately 20 portfolio company investments per Partnership. We purposely construct diversified, risk-adjusted portfolios, believing that the best risk-adjusted returns result when a portfolio is diversified by time, industry, thematic concentration, stage of investment and economic sensitivity. An exploration of WCAS XI demonstrates this diversification across a number of facets.

  • Time diversification - Consistent deployment of capital mitigates vintage year risk.
  • Industry diversification - The Firm targets an equal allocation of capital between WCAS's two target industries: technology and healthcare.
  • Thematic concentration - WCAS XI investments capitalize on various themes within our industry subsectors, such as growth in global online payments; demand for technology protection services; increasing need for cloud-based security services; leveraging technology in the dental lab industry; need for behavioral healthcare; and increased focus on customer satisfaction in hospitals. Additionally, the Firm typically limits portfolio exposure to any single investment to 6%-9%.
  • Stage of investment - The WCAS XI portfolio is well diversified with six buyouts, seven growth equity investments, five buy-and-builds and two small alpha investments.
  • Economic sensitivity - WCAS XI is primarily invested in industries with moderate or low economic sensitivity.