What Does The Fund Do? The fund targets investments in some of the world’s best pre-exit (IPO, M&A) companies. For us, the best companies have high gross and/or net margins, an enormous number of customers (often> 1 million customers or users), significant global growth prospects, limited competition and a clear IPO path. Examples of successful companies that fit our strategy include Google, Apple and Microsoft prior to their IPOs. Some of the companies that we invest in have more customers or users than the populations of countries like the United States, United Kingdom or Switzerland. In general, we target private companies that are superior to many public companies.
Who Are The Principals Of The Fund? The fund’s principals have won accolades and awards over investment careers aggregating in excess of 70 years and have participated in IPOs as advisers. As of July 2011, the fund’s principals participated in an investment culminating in the largest software venture capital transaction in the United States since 2007 according to the Wall Street Journal generating over 10x returns to investors. The fund’s principals have also won awards from organizations such as the International Financing Review (www.IFRE.com) and participated in some of the largest technology sector investment transactions. The pre- IPO funds principals have provided strategic advice to funds managing in excess of $100 billion in aggregate and are former professionals of Goldman Sachs, Morgan Stanley, Barclays Capital and Forbes 400 Billionaire Red McCombs.
What Type Of Performance Do You Target ? As of the latest quarter the aggregate hypothetical return on our target proxies since IPO is over 4000% with a median IRR since IPO of over 30% (see strategy and returns analysis). While only a small percentage of companies will generally reflect these returns, we believe that our strategy targets those companies with higher likelihoods of generating these types of returns and we believe that our diversified approach will help balance returns across our portfolio. Investments in private companies in general are speculative, illiquid and carry the risk of the loss of all or a part of principal. Portfolio diversification is an important tool in risk reduction.
Who Can Invest In MidasLP? From time to time we make investment opportunities available, in our pre- IPO fund, to accredited investors. If you wish to be notified of the timing of opportunities please click here: request form