Adams Capital Management Fund Iv

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Case Study: Adams Capital Management Fund IV 1. Adams espouses a “market first” analysis of opportunity by looking for discontinuities. Is this substantive or window-dressing? Do the four types of discontinuities represent applicable guidelines? Are they comprehensive, or are there other discontinuity templates that a venture investor would find useful? Adam's "market first" strategy is a substantive approach to identifying market opportunities, as the firm has its own clear cut philosophical views on what defines a discontinuity. ACM's four types of discontinuities - standards, regulation, technology and distribution - represent applicable guidelines and provide the framework for a focused and disciplined investment strategy. A vital part of this strategy maintains that the entire firm must agree upon the industry or market before individual companies are considered for investment. This firm-wide consensus is achieved by hiring new partners that are engineers, who bring about their technical expertise to identifying promising and attractive markets. In addition, the formation of a Discontinuity Roundtable, consisting of twenty industry experts that periodically meet with the ACM partners to identify and discuss market discontinuities, provides a comprehensive and systematic approach to identifying investment opportunities in the market, and makes ACM more attractive as an investment partner. Although this market first strategy is substantive in terms of its potential return, it is not without its risks. Fund III involved ACM initiating a more active role in its ownership of its companies, by leading deals and holding a seat on every board, but by doing so it would potentially hurt ACM if the companies don't do well. 2. Analyse Structured Navigation. Is this a valid measurement of progress in early stage investing? Could such a program ever be a

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