Attractive market dynamics.
Wicks estimates that its target industries - information, education and media - collectively are the fourth largest sector in the U.S. economy with revenues in excess of $1 trillion. These sectors contain numerous investment segments and thousands of trading assets. Wicks targets segments within these three industries that have high levels of profitability and cash flow, have favorable long-term growth prospects and are generally less affected by recession than most sectors of the economy. In addition, regulatory and technology changes provide an increasingly attractive environment for growth.
Experienced management team.
Over the past two decades, the Managing Partners have accumulated significant knowledge and experience in the targeted industries. The Wicks team's extensive relationships within its targeted industries create privileged access to many investment opportunities. Their expertise, including sourcing, negotiating, financing, building and exiting investments, combined with their operational, financial and legal backgrounds, is particularly relevant due to the under-developed and under-managed nature of many companies in these markets, the opportunity to implement cost reduction and revenue enhancement programs and the need of these companies to access growth capital on favorable terms.
Proven investment strategy.
Wicks has consistently employed its investment strategy over the past 20 years. The Firm makes initial platform acquisitions at attractive prices, works to substantially improve company profitability and grow revenue in partnership with exceptional industry executives and seeks to build clusters of related businesses through integrating add-on acquisitions into a common business base.
Explicit risk mitigation.
Wicks believes that its investment strategy, combined with its sector knowledge, will provide it with an effective hedge against investment risk. Wicks reduces risk by: acquiring control of companies and changing and/or supplementing senior management teams; understanding business improvement potential before agreeing on purchase price; targeting "improvable" businesses in less competitive markets; starting with an initial platform and making add-on acquisitions only after validating both the initial investment and the management team; clustering businesses to achieve rapid cost savings and build scale; and putting a more conservative level of financial leverage on the initial platform company.
Demonstrated and consistent record of success.
Since 1989, through Wicks I, Wicks II, Wicks III, and Wicks IV, Wicks has invested over approximately $1 billion of equity capital in the acquisition and development of its companies.