Investment Strategy
The Oak investment strategy is based on active, value-added investing and is designed to generate exceptional returns for investors. Oak's investment team is one of the most stable and experienced in the industry. It is built around franchise partners who attract many of the most promising companies in our focus areas and take an active role in charting a winning strategy for these businesses. Oak concentrates on investing in companies with a proven business model, and who are committed to building long term sustainable value for their shareholders. We believe that our strategic, multi-stage approach positions Oak for excellent performance over time.
A multi-stage investing approach allows us to finance companies as they reach their growth inflection point, or when markets undergo change. This is when resourceful companies can establish a leading market position, protect that position, and maximize value creation. Oak's goal is to identify the point where market demand and technology intersect; and to select the business opportunity with the best vision, product offering and management team capable of achieving market leadership.
To support its active, value-added style of investing, Oak XII will seek ownership levels of at least 15% with some positions greater than 50%. Investment amounts will typically range from $15 million to $100 million.
The key elements of Oak's investment strategy are as follows
- Focus on investment opportunities in areas of deep domain expertise.
Over the past 29 years, Oak has developed market-leading expertise in IT, systems, Internet hardware & software infrastructure, clean energy as well as broadband and wireless communications, and services. Oak’s core technology expertise is complimented by experience in key verticals such as Consumer Internet, Financial Services Information Technology, Healthcare Information and Services and Retail. This deep domain expertise should enable us to continue to capture our attractive opportunities in these sectors. - Follow a multi-stage approach.
The Oak strategy is stage independent, starting from early-stage ventures to more mature, special situations. Given our view of technology market evolution, we expect to invest roughly 20-25% in traditional venture opportunities and 75-80% in special situation transactions. - Back proven management teams.
We target experienced, entrepreneurial management teams that are resourceful, disciplined and motivated by appropriate incentives.
Source investment ideas from a refined referral network. The majority of Oak’s investment opportunities come from a referral network made up of people close to Oak; i.e. CEOs, entrepreneurs, technologists, seed investors, private equity investors, bankers, lawyers and Oak affiliates. This network, extending internationally to India, China, Europe and Israel, assists Oak’s source of spinout and buyout opportunities.
