It can be difficult to tell the difference between private equity firms and sharing the origins of JSTAR's name and logo may help elucidate its uniqueness as a buyer of and capital partner to businesses.
The "J" in JSTAR is a nod to the investment cycle of creating value in private companies called the “J-curve”.
Buying a company is a large investment. It is not just the capital needed to buy/invest in a company, but also the diligence, legal, and other transaction costs to close a transaction plus in JSTAR's case often incremental investment in the company to catalyze faster growth. Thus the low portion of of the J-curve signifies the initial dip in the value of the investment before realizing the forward increases in company value from the investment.
But the STAR is JSTAR’s real differentiator.
Generally, it signifies that JSTAR brings a “secret sauce” to partner companies to catalyze significant growth in value (and therefore top tier "star" returns to capital partners).
The secret sauce starts with what JSTAR calls its First Principle: leadership and employees are everything and what fundamentally drives the increases in company value. JSTAR invests heavily in building a transparent, trusted, and aligned partnerships with leadership teams. That sounds simple but it isn’t, and few investment firms believe or live up to the First Principle.
Another part of the secret sauce is about uncovering new opportunities and sparking innovation with its companies and leadership teams. It often sees opportunities where others do not. But also rolls up its sleeves when needed and cares about the details because execution matters.
JSTAR is a deep, nuanced, Strategic and innovative Thinker that works with its leadership teams to ensure the strategy, execution plan and priorities are a winning combination. It remains a thought and execution partner as new data, analyses, and competitive dynamics evolve so the strategy, execution plan, and priorities are responsive to an always evolving world.
JSTAR is an Ambitious partner that can be relied on to never advocate "taking a hill" when it makes sense to "take the mountain". It's Always available – its most important role is to make sure its companies and leadership teams have everything needed to succeed.
And by building trust and symbiotically working with its leadership teams, JSTAR delivers Results.
JSTAR has increased revenues by multiples and grown ebitda margins by a handful or more percentage points in its investments. It has directly dealt with almost every situation possible across many companies and industries. By building trust and symbiotically working together with leadership teams that have unique domain and company experience, one plus one does equal five.
What about JSTAR's purple brand color? It is a combination of blue and red.
The blue is to signify Trust. Trust is critical in the business of buying and building companies. An owner needs to trust a buyer will do what they say they are going to do. The transaction process is a grueling one. Diligence isn't always fun, and issues frequently arise. An owner needs to know they have a buying partner that understands the underlying value of their business and a reasonable counterparty in getting the deal closed. Often as important is trust that the business will flourish under after the transaction, and the strong legacy of the business is sustained. Additionally, the trust needed between a capital partner and the leadership team running the forward business goes without saying. When JSTAR evaluates a potential purchase, it doesn't first concentrate on the financials. It evaluates the uniqueness of how the company's products/services serve its customers and the operating infrastructure built to sustain a unique competitive positioning in its industry. It seeks to understand the company's growth plan and how JSTAR's strategic analyses, outside-the-box ideas, experiences, and relationships can complement and often enhance the company's strategy and execution. It is only when JSTAR is highly comfortable with the company's positioning and JSTAR's ability to add significant differentiating value that it offers to purchase a company. That means JSTAR is buying more than just the cash flow of the company, it's buying into an exciting forward vision of how the company will grow and evolve. This vision and value-add -- combined with JSTAR's commitment to being straightforward, transparent, and an innovative thinker and problem-solver -- builds trust with owners and executive teams.
The red is to signify Passion. At its core, JSTAR is passionate about investing in and partnering with great companies and leadership teams to strategically capitalize on the opportunities to drive growth, market leadership and execution. Here at JSTAR, we're fortunate that we are able to do what we love every day. Many investors most enjoy the chase of the deal. JSTAR most enjoys symbiotically working with leadership teams to achieve big goals.
Let’s partner on that J-curve and see just how transformative we can be together.
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