Seminal Capital Partners: Lets get the band back together again

Tom Paine


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Seminal Capital Partners is raising up to $150 million for its first fund, according to a regulatory filing. The Radnor-based buyout firm will focus on lower and mid-market cloud software and services companies, and is led by former Actua execs Walter Buckley, John Loftus and Vince Menichelli.

Actua, originally Internet Capital Group (ICG), became defunct last year after disposing of all assets. It had a market capitalization of more than $50 billion before the Internet bubble collapsed. Verticalnet was a major holding. It was a part of an interrelated group of companies ("keiretsu" model ) related to Safeguard Scientifics. Comcast was also an investor. But it slimmed down in the 2000s to a small group of niche Cloud companies, some of which were quite successful.

One important distinction between Actua and Seminal: Actua ((NASDAQ: ACTA) was publicly traded, while Seminal is starting life as a privately held company.



From Seminal's website:

WHAT DO WE LOOK FOR IN OUR INVESTMENTS
TARGET TRANSACTION TYPES

Majority investments with capital for liquidity and/or growth including recapitalizations, buyouts, spin-offs and divestitures

Initial equity investment size of $10 - $50 million


TARGET COMPANY CHARACTERISTICS


Business Type: Cloud-based software and services businesses with highly recurring revenue models

Management: Experienced management team with a desire to continue to build the business over the long-term
​
Revenue Size: Approaching or exceeding $7 million of revenue
​
Company Growth: Double-digit growth rate
​
Profitability: Cash flow breakeven or better

Competitive Moat: Differentiated business with significant barriers to entry