WCAS defines Technology to include a very large and dynamic universe of companies that provide services to other companies.  We focus on business-to-business models where a target company's client base consists of other businesses (and not consumers).

 

We target investments in companies with (i) attractive organic and acquisition-related growth opportunities, (ii) strong recurring revenue and free cash flow, (iii) high operating leverage and (iv) defensible market positions.  We believe that our portfolio companies deliver value to their customers by enabling greater growth, improved productivity and quality as well as higher cost efficiency. 

 

Many companies within Technology benefit from strong business models and have proprietary intellectual property. These models typically include the capability to cost-effectively scale by standardizing a set of common products and services in a vertical market (e.g., retail or banking) or functional area (e.g., human resources or IT).

 

The Technology universe includes a number of attractive subsectors and a wide range of diverse business models. Some examples of Technology sectors in which we invest include payment processing, financial technology, business services, outsourcing, industrial services, IT services and software.
 

The Technology industry in the U.S. is projected to generate over $3.6 trillion in annual 2013 revenue, having grown at a 6% compound average growth rate over the 2004-2012 period, based on Forrester Research. The market is projected to continue to grow by approximately 8% a year through 2017. Additionally, select WCAS-target subsectors, such as managed hosting services, emerging payments and software, are expected to outpace broader Technology industry growth. Furthermore, the dynamic nature of the Technology universe makes it probable that new business models, not accounted for in the current total market size estimates, will emerge over the next decade.