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
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
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.