MCWIN PARTNERS INVESMENT PHILOSOPHIES
Unstoppable trends are powerful long-term forces that are revolutionizing the ways we live and do business globally.
These trends can endure throughout an economic cycle, potentially offering resilient growth potential to portfolios.
01Sustainability / ESG – step change in government and corporate commitments
ESG is becoming increasingly important in new fund launches, though for many sponsors, their ESG efforts remain reactive to investor demand. Younger investors tend to be more attracted to ESG or impact funds, as do pension funds, sovereign investors, and family ofﬁces. But what exactly “ESG” looks like for any given investor can vary widely.
02Accelerating Digitalisation: e-commerce / telemedicine / remote working
- E-commerce has skyrocketed during the pandemic, which has led to a signiﬁcant leap forward in terms of digital adoption. it appears that those new consumer habits are here to stay. Everything is online now. As the pandemic has forced us to change our work habits, remote work has gone mainstream.
- The marketplace phenomenon, typically associated to consumers also conquer the B2B space.
- 5G technology is here and is expected to drive substantial growth across multiple sectors.
- Defensive and offensive corporate strategic action. C19 has not prevented large tech IPOs and M&A transactions from happening.
- Continued growth of alternative capital; surge in SPAC Issuance.
- Sponsor deployment of record dry powder.
- Shareholder activists driving transactions.
04Exploiting mean reversion
COVID-19 has caused huge economic and ﬁnancial market disruption, but it is neither unstoppable nor a trend. The pandemic’s impacts are temporary, causing massive valuation distortions in 2020 that will unwind in 2021.
Exploiting mean reversion, capitalizing on distressed opportunities.
There is no bigger industry on our planet than food & agriculture. An increasing focus by consumers on sustainability, health & freshness has placed significant pressure on the food industry to innovate.
Increasing longevity explores how the aging of the world’s population will impact future growth and consumption patterns, with an emphasis on healthcare.
The future of energy highlights how we expect advancing technologies to drive global adoption of alternative energy while fossil fuels gradually fade.
The development of new electric vehicle technologies, autonomous driving & the creation of the on-demand economy has all come together to spark a renaissance in the transportation sector over the past decade. There’s been an explosion of companies trying to reimagine the way humans get from Point A to Point B.
The investment implications for a more accessible, less expensive reach into outer space could be signiﬁcant, with potential opportunities in ﬁelds such as satellite broadband, high-speed product delivery & perhaps even human space travel.
Digitization recognizes how digital innovation is revolutionizing companies & industries, shaking up long-established ways of doing business. Artiﬁcial intelligence, automation, robotics, cybersecurity & ﬁntech are among the elements that we have highlighted.
Technology that looks forward to improving and automizing the delivery and use of ﬁnancial services. The use of smartphones for mobile banking or cryptocurrency or examples of this technology.
The Rise Of Asia
Addresses the steady shift in global economic power from West to East, driven by the region’s urbanization, growth of the middle class, and advancements in home-grown technologies.
Our Investment Criteria
Ability to scale
The company needs to have a scalable business model that addresses a pressing issue in the market, while tackling a segment with great potential for future growth.
The core team must consist of amazing individuals that, together, are greater than the sum of their parts. They must be capable of guiding the company through its scale-up phase.
Differentiated business model
When there are multiple players in the same field, we like to see companies that have a unique business model. For example, we would prefer to invest in a company that is focusing on the B2B segment, if other players in that space are proposing a B2C approach.
We place a strong emphasis on the need for a strong portfolio of IP, allowing the company to protect its processes, corner the market, and raise barriers to entry for new players.
Accelerating positive change
We seek to invest in companies that will have a positive impact on the future outlook of the world when they succeed. In doing so, we strive to back changes that are both necessary, and inevitable.
Our sweet spot is Series B, where we can add significant value by helping companies scale effectively. We prefer to lead or co-lead the round whenever possible.