Caymus Equity Partners: Accelerating Strategic M&A
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Caymus Equity Partners, a New York-based private equity firm, specializes in investing in lower mid-market private companies and inorganically accelerating their growth through strategic acquisitions. One of their portfolio companies, a leader in the dental laboratory industry, was looking to make bolt-on acquisitions to facilitate expansion across the US.
The Challenge: Velocityand Efficiency in Deal Sourcing and Origination
Prior to using ALPHA10X, Caymus primarily relied on investment bankers and advisors to source and originate acquisition targets for their portfolio companies. The cost of such intermediation services is significant. Additionally, the origination process is slow and resource intensive, taking on average three months for the compilation of a qualified target list.
On-market deals, when discovered, presented multiple challenges, with fierce competition in the auction process driving up valuations. Off-market deals, the ‘unknown unknowns’ were largely undiscoverable. In the high-velocity world of private equity, the ability to originate and analyze precision-matched targets, quickly and efficiently, is a game-changer.
AI-Powered Precision Targeting, Scoring, and Ranking
ALPHA10X presented Caymus Equity with an AI solution that matched the firm’s need for coverage and precision. Curating matches from massive volumes of data, through the medium of a canonical knowledge graph comprising over forty million private companies, enriched with deep insights from diverse sources, ALPHA10X provided a granular and nuanced understanding of the market, and each individual target.
Applying cutting edge AI to aggregate and semantically connect dynamic data from a multitude of sources, ALPHA10X shapes, curates, and maps highly relevant knowledge, detecting, and correlating similarities, computing probabilistic scores and actionable insights, and predicting outcomes with high accuracy. Analyzing over ten thousand targets, the AI was able to rapidly select, rank, and score the top 50 targets aligned to Caymus’ search criteria, including technologies, location, reputation, team, and other features.
The Technology
ALPHA10X reveals highly relevant knowledge and insights by automating discovery with semantic search and advanced Natural Language Processing models – for faster business results. This dramatically saves on the time spent in deal sourcing, scouting and qualification, research, and analysis, accelerates time-to-impact, and reduces the immeasurable cost of lost opportunity.
ALPHA10X streamlines the resource-intensive process of research and analysis, tracking trends, markets, competitors, science and technologies, and mapping hotspots so that investors and innovators can source inspiration from the closest semantically deduced correlations. The AI shapes knowledge; matching, and analyzing based on individual strategy or thesis, as well as individual usage patterns, to reveal the ‘unknown unknowns.’