Doxim founder Chris Rasmussen held no illusions about private equity’s reputation. “I hear a lot of horror stories,” he said. “A lot of times PE guys come in and want to change the business, and that just didn’t happen here.”
Doxim, a Toronto- based software provider to the financial services industry, was looking for a large investor to help the company expand its product offerings and develop a customer base within the United States. After meeting with other firms, Doxim’s bankers introduced him to Strattam Capital. Rasmussen was pleased to see Strattam’s approach was “not as all-knowing, but that they could learn something from the company. I think that measured approach is good for them, and good for people who are raising money. It’s really worked out great because it was collaborative.”
That collaborative approach is key to Strattam’s investment philosophy, said firm co-founder Robert Morse. Morse and fellow Oak Hill Capital Partners alum Adrian Polak launched Strattam in 2013 to invest in enterprise software and information technology businesses that are 15 to 20 years old. At that stage, company management teams should have a strong understanding of their products, Morse said.
Before it invests in a company, Strattam crafts an expansion strategy with the management team. Those strategies often call for new product lines, a broadening of customer relationships or acquiring complementary businesses.