STG
The company currently employs over 60 professionals, 40 of whom are dedicated to investment and 8 to operations, all based in the Palo Alto office in California.
The company is independent and mainly owned by the fund managers who took over from the founder.
Managing Partner Bill Chisholm controls the company. In addition to the management team, Goldman Sachs has taken a minority stake in the company.
Prior to this new vintage, STG managed around $5 billion.
A "Value" approach that sets the company apart from traditional Private Equity funds
- The firm focuses only on underperforming or undervalued companies:
- Carve-outs (acquisitions of non-strategic IT divisions from large groups);
- Fallen angels (well-positioned companies with strong historical growth that are now experiencing a growth slump);
- Public to Private (takeover bids on undervalued listed companies).
- Competition is limited and acquisition prices are below the market average:
Few players of comparable size are focused on these complex segments, which require a high level of operational expertise.
In the current economic climate, following very substantial falls in valuations in the US tech sector, the team sees many opportunities in its target market (in particular listed deals which are now highly undervalued);
- A highly disciplined, tried-and-tested modus operandi, replicating its historical successes in well-mastered IT market sub-segments
- Strong involvement alongside management in implementation of the transformation plan;
- Progressive tickets to support external growth ;
- Low recourse to debt at the time of acquisition.
Consistent strategy for 20 years and a unique sector focus
Since its inception, the company has focused exclusively on enterprise software, with a track record of over 20 years led by an experienced entrepreneur in this field. It occupies a very specific niche, offering remarkable specialization and stability.
Thecompany's partners have over 15 years' experience with the firm, constantly working to improve the company's processes and sector knowledge.
Proven track record and growing capacities
Since 2008, the company has been fully independent. Under the leadership of Bill Chisholm, the company has undergone a major transformation from a family office to one of the leading software Private Equity firms in the US.
STG is managed with the same diligence as a holding company, thanks to a leader who is highly respected for his people skills, perseverance and ability to drive growth.
The operational team is highly qualified, with 8 members specializing in areas such as IT, technology, finance, human resources, marketing, sales and M&A. These professionals, employees of the firm, are dedicated to providing support to portfolio companies. Their expertise is essential to STG's due diligence and ambitious transformation plans.
The excellent, sustainable and promising returns on investment testify to STG's solid commitment as an investor.
STG Fund VII
