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Industry
/ Technology
Delta Capital will focus investments in the following industries:
- Health Care - Several dynamics are driving
change in the health care industry:
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Double-digit increases in health care costs,
pressure from payors, and shortages in key health care professions
are forcing providers to become more efficient, which is
driving changes in processes and systems- both administrative
and clinical. |
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Biotech companies are leveraging the human genome map
to develop new therapies for catastrophic diseases. |
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Genetic level diagnostic testing is leading the industry
to personalized medicine. |
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The high cost of health care is forcing companies to look
for innovative ways to reduce their health care costs through
new plan designs and direct management of employee health. |
Delta Capital will invest in companies with medical products and
services that we believe will provide improved health care at
a lower cost.
- Information Technologies - Since Fairchild
Semiconductor started making chips from silicon four decades ago,
information technology has exploded. Computers and all the peripherals
associated with them are the modern-day equivalent of the Industrial
Revolution. Needless to say, this creates huge commercial opportunities.
We will be looking for products -- smaller, faster, better, innovative
software, Internet technologies -- that will dominate the future
in this rapidly changing sector.
- Supply Chain Logistics - At 10% of GDP, logistics
is second only to healthcare in its influence on the economy.
Everything tangible that is produced is ultimately shipped to
a destination. Delta Capital is actively looking for companies
that provide solutions to the challenges presented by the integration
of all players in the supply chain. Whether these companies provide
stand-alone technologies or value-added services, Delta is looking
to invest in great companies that are participating in this very
large sector of the economy.
- Business Services – The U.S. economy
is rapidly becoming a more service oriented economy as manufacturing
capacity continues to build in lower cost, off-shore locales.
Delta Capital is interested in service companies with recurring
revenue streams and healthy growth prospects.
- Industrial Technology – In the manufacturing
and industrial arenas, competitive advantages are maintained and
enhanced in the U.S. through the deployment of new technologies.
Delta Capital will evaluate companies that offer “game-changing”
products or services in the manufacturing and industrial setting.
- Energy Technology – With ever increasing
energy prices and the U.S. need to develop alternative sources
of energy and enhanced delivery of existing resources, Delta Capital
is focused on companies that optimize the current energy production
chain or offer solutions to alternative energy. Specifically,
the firm is interested in service companies that offer competitive
solutions to the energy industry.
High Growth/High
Margins - Delta Capital seeks investments in businesses
operating in markets with high growth and high margin potential.
To achieve the target returns desired, the company must be able
to achieve liquidity with a superior valuation. Significant growth
potential is necessary for the company to warrant a superior valuation
in the desired three-to-five-year timeframe.
Platform Technology - Several major issues are examined
regarding the technology used by the prospective company. Core technology
(vs. product technology) is very important to the firm and is often
referred to as "platform" technology. Through due diligence,
Delta will focus on whether the technology has a variety of product
possibilities.
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