In a Mergermarket fireside chat hosted by Giovanni Amodeo, Brian Dudley, Partner, Growth Equity, discussed the intricacies of growth equity as an attractive asset class and emphasized Adams Street’s focus on investing in rapidly growing technology and healthcare companies. The discussion offered a comprehensive overview of growth equity investing, highlighting the importance of thematic sourcing, the role of technology in investment processes, and the strategic implications of the capital supply-demand imbalance.
“Today, however, and likely over the foreseeable future, we will be operating in an environment where the demand for capital from companies far outweighs the supply of capital from investors,” Dudley explained, citing three key reasons: companies running out of cash, a vibrant early-stage ecosystem producing many promising companies, and a decline in the participation of non-traditional investors in the growth-stage ecosystem.
Key timestamps:
00:09: Introduction to ION Influencers’ Fireside Chats
00:34: Brian Dudley’s Background and Role at Adam Street
01:28: Evolution of Adam Street Partners
03:27: Size of the Fund and Investment Criteria
03:55: Deal Origination and Workflow
05:22: Identifying Niche Subsectors and Pain Points
07:22: Use of Technology in Screening Process
08:45: Qualitative and Quantitative Assessment of Companies
10:11: Deal Flow and Investment Metrics
10:50: Measuring Success and Incentives
11:49: Market Environment and Growth Stage Investing
16:16: Impact on Valuation and Company Selection
20:36: Opportunity in Lower Valuation
21:25: Quality of Companies and Valuation
22:11: Long-Term Value Creation
22:51: Impact of Listed Companies on Scenarios
23:22: Viable Exit Opportunities
24:34: Team Expansion and Hiring Profile
25:10: Importance of People in Investing
