About Iron Gate Capital
Investing directly in deals is highly challenging. We view ourselves as “risk managers” not “risk takers” and have developed an approach that our LP’s lean on to improve the risk adjusted return profile of their direct deal portfolio.
We seek to generate 3—5x ROI’s in 5+ years by impacting each investment as follows:
Selection: Only 1—2 deals a year pass our screening and are invited to join our portfolio. Our selection approach is all about removing “false positives” in diligence. We run detailed diligence and prefer the old-school discipline of committing our analysis to paper.
Growth Potential: We don’t believe in hype and work carefully to underwrite the sales pipeline, the sales process, and the company’s ability to grow at 50%+ year over year. We also leverage the domain expertise within our LP base to help evaluate the product-market fit and competitive advantage of each investment.
Value Creation: We become valuable thought partners to our CEO’s by utilizing “smart hustle” —our words for combining data driven insights and deep industry/operating expertise to help support decision agility at critical moments.
Capital Allocation: All capital from our LP’s flows through Iron Gate, giving us the governance and voting controls of a typical minority PE growth fund. Iron Gate invests an average of $5—10 million per company ($3—5 million as an initial investment).