Lutetia Digital Transformation Opportunity

Lutetia Digital Transformation Opportunity - I USD - KYG5862E1089

Description

The core focus of the Fund is to build a portfolio of listed technology companies considered by the AIFM to have a very strong potential to increase in value in the next few years, either due to their specific business model, market opportunities or quality of management. The Fund is targeting comparable returns to late-stage venture funds (i.e. private equity funds which invest in selected companies which have already demonstrated their ability to deliver growth), with less governance risk and more liquidity and transparency. A buy-and-hold approach and low turnover are anticipated in order to fully capitalize on selected companies. 

The Fund offers a unique approach, with investments made as early as the initial public offering (“IPO”) in recently listed technology companies. Within the technology sector, the Fund will mostly focus on software companies operating business-to-business (“B2B”). IPOs of the best B2B technology companies provide several attractive vectors to unlock value: 

- from the company's perspective, this offers the ability to fund growth, scale up, and compete for talent – a key element in the sector 

- from the investor's perspective, companies that “passed” the IPO test offer much safer and liquid investment opportunities in a regulated environment, while returns can be as attractive as in private markets. 

Strategy

The Fund’s objective is to outperform the interest rate return that could be obtained on the overnight interbank market in US dollars (US Federal Funds Rate) over a recommended investment horizon of five years, by actively investing in the equity markets, focusing primarily on the technology sector in the context of digital transformation (i.e. the integration of digital technology into all areas of business). 

The Fund focuses on the wide, attractive and growing B2B software universe, where companies’ business models are the most compelling and resilient. 

The Fund invests at IPO or in recently listed Companies to take advantage of the significant “loss of information” during the private-to-public transition phase when public markets are not equipped to understand new and complex business models and sort winners and laggards. 

Our portfolio is composed of 10-20 companies with the potential to increase in value 5 times in the next 5 years and deliver comparable returns to late-stage growth funds, with more liquidity. 

Our investment process involves direct access to late-stage growth companies through a “blue-chip” network, long-standing relationships with ECM desks to get IPO allocations as well as a highly specialized model to select the most attractive hypergrowth companies.