Lotus Innovations has closed on $10 million for its first private equity fund that held a first close on April 1. The fund targets early-stage information technology enterprise services companies. The Lotus Innovation Fund is backed by an executive advisory board that brings talent around commercial banking, M&A, investment banking and private equity.
Lotus Innovations announced today that its first Private Equity fund of $10 million was over-subscribed when it closed in the first round on April 1, 2014. The fund, located in Southern California, is unique in its approach to meeting the need for funding of early stage Information Technology (I.T) Enterprise Service companies. According to Christian Mack, Managing Director, “By leveraging a proven, proprietary investment platform that transforms the companies into Software as a Service (SaaS) based companies, Lotus Innovations is able to accelerate growth and valuations”.
The Fund demonstrates the strength of its proprietary Lotus Methodology with two successful and profitable companies that are now portfolio companies of the fund. The Lotus Methodology utilizes shared resources and embedded Private Equity management to accelerate growth and valuation. The Fund is currently reviewing other investment prospects that fit their focused, and proven model of success in B2B markets.
The Fund is particularly well-suited to the model of actively managed portfolio companies. The general partners have a long history of success in technology-related firms, as well as bringing expertise in Operations, Strategy, Marketing, Finance, Sales and Service Delivery to the Fund.
The Lotus Innovations Fund is backed by a strong Executive Advisory Board that brings additional talent in the fields of Commercial Banking, M&A, Investment Banking and Private Equity. “After working with Christian Mack over the past eight years as his banker and advisor, I welcome the opportunity to be a part of this exciting new venture as a personal investor and member of the Strategic Board and Advisory Committee,” said Ivo Tjan, Chairman, and CEO of CommerceWest Bank.
About Lotus Innovations
Lotus Innovations, located in Irvine, California is a $10M Private Equity fund focused on transforming Enterprise I.T. Services companies into SaaS-based companies. By operationalizing a repeatable process with Lotus Innovations’ proprietary methodology and embedded management, the fund creates a new paradigm that accelerates growth and valuations.
The innovative approach to investments in early stage Enterprise I.T. Services companies and subsequent transformation into SaaS companies, creates a systematic deal flow for other Private Equity firms and strategic alliance partners as each portfolio company is exited by Lotus Innovations.