Investment Strategy

Focus On Software and Business Services

JMI Equity is a private equity firm that invests in growing software and business services companies. We have spent our careers advising and investing in software and business services companies since the early 1980's and through numerous market cycles. As a result, we have developed the skills to identify compelling investment opportunities, select companies positioned for success and accelerate the creation of value in portfolio companies. The software and business services industries are characterized by attractive fundamentals: an abundance of relevant market segments, modest capital requirements, low cost of goods sold and high barriers to entry and switching costs. These industries are highly fragmented and maintain continuous cycles of innovation.

Investing In Leading Businesses

JMI invests only in markets we know exceptionally well and in select opportunities where our skills and experience can help management teams build significant businesses. JMI has developed a primary research process to identify investment opportunities. We review products, competitors, financials and business strategies to gain a better understanding of the markets in which we invest. Our approach increases our exposure to software and business services companies seeking capital and introduces us to new market segments. 

An Active Investor 

JMI is an active investor. Our portfolio companies have distinguished themselves with proven business models and we partner with management teams to build industry leaders. We always take seats on the boards of our portfolio companies and we assist with strategic planning, executive recruiting, capital allocation, acquisitions and liquidity options.  Typical JMI investments range from $10 million to $60 million. For larger transactions, we may leverage our large base of limited partners, many of whom have the ability to make sizeable co-investments alongside JMI.    

Long-Term Approach

JMI believes in a long-term perspective with our investments. We are committed to helping our companies succeed and to provide guidance to build market leading companies. We have invested successfully at all stages in the business lifecycle – from helping early-stage companies bring products to market, to providing the first institutional capital to growing, self-funded companies, to leading and participating in management buyouts and recapitalizations of later stage companies. We have experienced the challenges companies face at all stages of their development, and we are committed to helping our portfolio companies work through those challenges as they arise.