Our focus on the niche market consumer sector is driven by four primary elements:
The market is large and attractive. The consumer segment, at over $10.5 trillion in sales, is the largest segment of the roughly $14.3 trillion U.S. Gross Domestic Product. TVG’s targeted industry verticals account for over 70% of annual U.S. consumer spending, or approximately $5.2 trillion. The consumer segment has demonstrated highly attractive long-term, risk-adjusted revenue growth, margin strength, and attractive public and private market investment performance.
The consumer industry has significant growth potential. High growth and attractive growth opportunities in the consumer sector are being driven by numerous factors, including: (i) favorable demographic and lifestyle trends; (ii) market inefficiencies (such as fragmented sectors and multi-tiered distribution); and (iii) corporate reorganizations, resulting in the opportunity to acquire non-strategic and often underperforming brands at attractive valuations.
The consumer industry leverages our knowledge base. The senior management team of TVG has over 22 years of strategic, operating, and financial experience in the consumer industry. This experience includes the management of companies in all stages of their development: early stage, high growth, mature/late stage, as well as turnarounds. We have nurtured proprietary relationships with leading strategic industry players and their CEOs across all of our targeted verticals, and have developed a unique consumer trend-based behavioral model in order to augment and complement our investment analysis, and provide additional value to each portfolio company. Collectively, we provide a valuable and unparalleled experience base and set of resources to companies in which we invest.
Companies that meet our partnership criteria share a number of common features:
A concept with substantial, identifiable consumer demand which can be effectively replicated in multiple markets;
A unique and leverageable brand asset or capability that differentiates the company from its competition;
Attractive business model economics, addressing a specific customer need and demonstrating the operational capabilities to achieve market leadership;
Strong management in place with a proven ability to execute a clearly defined strategic business plan;
A strong, focused and customer-oriented culture;
Significant growth or growth potential and an expansion strategy that is consistent with the company’s performance history;
A defensible and extendable position in a growing industry category.