Tern invests in established, private software companies which operate in fast growing technology sectors such as mobile and cloud-based technologies. It adds value to its investments by helping them set and achieve new strategic objectives.
Current holdings consist of one major (Cryptosoft 100% equity stake) investment and three minority stakes (each below 1%), in private technology companies, acquired between 2013 and 2014. These companies all fit the investment profile, with established products (based upon owned IP) and customer bases, and growing revenue outlooks as they approach potential exits.
The executive team has a strong investment track record and ready access to the skills required to help growth companies to achieve their full potential. This includes provision of advice on business-to-business (B2B) sales and marketing strategies, preparation for product testing and commercial launch, creation of in-house sales resources and help securing strategic and commercial partnerships.
Tern has targeted 100% compound IRRs and exits within three years of initial investment. Cryptosoft is by far the most material component of the current portfolio; on Tern's projections c 95% of potential portfolio return. If it achieves its target, net returns will certainly be equivalent to a multiple of the current share price.