Capital for transformation and growth.
Capital follows economic fit: Opsist first establishes an operating model that can support itself, then considers capital for transformation or proven growth. Existing revenue supports normal operations.
Sources and uses
Two purposes for capital.
The operating platform is designed so the company remains self-sustaining while capital is deployed against transformation or proven growth.
Existing revenue
Normal operations
- Payroll
- Vendors and suppliers
- Delivery and service
- Day-to-day running of the business
Transformation Capital
Technology and operating capability
- Technology platforms
- Workflow automation
- Data infrastructure
- Mobile and web products
- Operating systems
- Integrations
Growth Capital
Proven growth initiatives
- Working capital tied to proven demand
- Channel and distribution expansion
- Inventory where demand supports it
- Hiring into demonstrated capacity constraints
- Customer acquisition with understood unit economics
- Acquisitions and add-ons where integration capability exists
Self-sustaining operating company
Greater operating capacity, with normal operations still funded from the company's own revenue
Deployment
Capital deployment.
Transformation capital builds capability the company's current cash flow was never designed to fund. Growth capital is deployed against demand and constraints the business has already reached.
Transformation Capital
Technology platforms
Workflow automation
Data infrastructure
Mobile and web products
Operating systems
Integrations
Growth Capital
Working capital
Channel and distribution expansion
Inventory
Hiring into capacity constraints
Customer acquisition
Acquisitions and add-ons
See how add-on acquisitions fit inside a portfolio and how capital fits the broader value-creation plan.
Parameters
Investment parameters.
Published parameters for capital deployed by Opsist. Fund size and committed capital are not published.
Terms are company-specific and subject to diligence. This is neither a commitment of capital nor an offer of securities.
Capital
How capital is provided.
Capital availability, structure and amount are determined company by company. There is no standard instrument, no standard size and no pre-set allocation.
Each investment is separately diligenced, approved and documented. Nothing is committed until terms are agreed in writing.
Opsist does not publish a committed fund size on this site. Any discussion of capital is specific to the business under review and subject to a separate written agreement.
Criteria
Investment criteria.
Established revenue
Legible financials
A defined use of capital
Reduced founder dependency
Manageable concentration
Governance readiness
Structures
Transaction structures.
Structure follows cash flow and growth profile and is decided after the use of capital is established. The categories below are illustrative.
Minority equity
Suited to businesses reinvesting heavily for transformation or growth where fixed repayment would constrain the plan. Valuation and governance are company-specific.
Repayment from revenue
Suited to businesses with steady collections that prefer to limit dilution. Payments flex with revenue.
Blended structure
A combination where neither instrument alone fits the cash profile or the risk being funded.
Structures listed as published by Opsist. Specific terms, valuation, governance and protections are determined per transaction and subject to diligence and documentation.
Process
Investment process.
- 01
Screen
Fit against published criteria and the stated use of capital.
- 02
Diligence
Financial, operating, customer and legal review, scaled to size.
- 03
Structure
Instrument, amount and terms proposed against the cash profile.
- 04
Documentation
Definitive documents, closing conditions, funding.
- 05
Post-close
Reporting cadence and agreed operating support.
Governance
Independent operating and investment decisions.
An operating engagement and an investment are evaluated and documented separately. The operating platform is built independent of any capital decision.
The operating relationship does improve information quality. When Opsist runs the close, reporting is current and the diligence file effectively already exists, which shortens process and reduces surprises.
Where a conflict of interest could arise between the operating role and an investment decision, it is disclosed to the founder in writing.
FAQ
Common questions.
- Is an operating engagement required to be considered?
- An operating engagement is a separate decision. The operating base matters, however: where reporting is unreliable, diligence is slower and the range of workable structures is narrower.
- Does an operating engagement entitle a company to capital?
- Operating partnership and investment are independent decisions. Many partnerships never involve capital, and that is a normal outcome.
- What does Opsist capital fund?
- Transformation of capability or proven growth. Normal operations are expected to be funded by the company's existing revenue, and the operating platform is built so the business remains self-sustaining.
- What is required to evaluate an opportunity?
- Historical financials, current management reporting, customer concentration, cash position, capital structure, and a clear statement of what the capital funds.
- How does growth capital relate to add-on acquisitions?
- Growth capital is deployed first, to prove the operating model and demand. Add-on acquisitions follow once integration capacity exists.
- Is this an offer of securities?
- Nothing on this site is an offer to sell or a solicitation to buy any security. Any transaction is documented separately and subject to diligence.
Related: value creation, the operating platform and portfolios.
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The Ops Audit produces the operating picture any capital conversation requires: reporting quality, cash position, concentration and the plan the capital would fund.