Triton Speaks About What It Is Looking For In New Physical Security Investments
Over the last few years, Triton has invested many hundreds of millions of dollars across Acre and now Wavelynx. Moreover, the private equity firm tells IPVM it is looking to invest in more physical security companies.
This report shares Triton Sachin Jivaniji's comments to IPVM about the private equity's investment thesis, views on investing in the physical security industry, and what companies might be the right next deal for the PE firm.
This is part two of our interview; see Triton Speaks About Investing In Access Control And WaveLynx. Also, see other interviews with investors including James Rothstein Speaks On Investing in Integrators and VC Firm Sapphire is Looking to Invest in Video Surveillance Startups.
Other investors interested in physical security companies who want to share what they are looking for, please contact us info@ipvm.com.
Executive *******
****** ***** ** ****** *** ******** in ******** ******** ** ****** **** investments ** *** *****. *** **** is ** ****** * *-* ******** physical ******** *********.
**** ******** ********** ******* ****** ******** security, ******'* ******* ****, ****** ***** filters *** ***** **** ******* ****** than *** ******* ********** *****. ****, Jivanji ********* **** ***** ****** ** flexible ** ****** **********'* ******* **********, he ********** ***** ***** ** *** early ******* ** ************* ** * subscription ***** ***** ****** *** **** add **** ***** **** *********** ********* in **** *********.
******* ********** ** **** **** ** is *** ** *** ***** ****** of ******** ********* ** *** "******** and ****" ******, *** ***** *** four ******* *** ** ***** **** sector ** ******* *** **********. *** reasons ******** **** *** ******** ******** market *** ********** ******, ** ********** anti-cyclic, ** ***** ******* ********** *********** other ********** ****** *** ********** ** had **** *******, *** ** ********** and **** ******** ************* *** ****** consolidations.
Building * ********* ** "*****, ****, ** ****" ********** ** ******** ********
******* ********** ** ******'* ******** *** how *** ********** *** ******** ***********:
****** *** ********** ******** ******** ** one ** ***** *** ***-******* **** we ****** **** ** ***** * theme ******. ** *************** ****** ************* **** ******* ** this *****, *** ** **** **build * ********* ** *****, ****, ** **** ********** ** **** ***** in the medium term. And our investments into both Acre *** ******** ******** **** ** * ****** **** **** **** ******** **** * *** ** ***** ** *****. [emphasis added]
****** ******** ********, ******* **** **** Triton ***** ***** ************ ** * "priority ******" ***** *** ***** *** investments ** ****** *******:
** *** ********** ********** ** ***** segments [****** ****** *******]. *****, *** example, ** * ******** ****** **** for **.
Scale *** **** *** *** ******* ******* **** ****** ********** ********** *******
**** ******* ** ********** *******, ****** first ******* *** ***** **** ** not **** *** ****** ****** **** criteria, ******* ****:
*** **** ****** ** ***** *** key ****** **** ** **** ******. I **** ****** **** ********** ** this ***** **** *** ****, **** small. **** *** *** ***** $**, $20, $** ******* ** ******, *** list ******* ****, **** *******.
******* **** ****** ***** ****** ** conversations **** ***** ******* ********** ***** on, ***** ** **** ** *** with ******** * *** ***** ***:
*** **** ** **** ***** * simple *** ****** ******. * ***** if ***'** ** **** **** ** size ***** ** ******, ** *** think *** **** ** ** * couple ** *****, ** *** **, and **'* **** ** ******* * dialog.
** *** **** ** ********, [**'*] not * *** *******, ** ******* the ******** * ****** ** ***** ago, *** **** **** * ******** business ** *** ****, *** ****'** really ***** ****.
****** ***** **** *** ***** ******** across *** ******** *** ***** *** limit *** ******** ** ******** ******, Jivanji *********:
** *** ***** *** ******** ******, but * ***** ****** **** ** generic ******* ** * ** **** too **** ******, ** **** **** quite **** *** ***********. ** *** invest **** ** ******* *** ********** businesses, *** **** ******* ** ** can ****** ** *** ***********, *** installer ****, [*****] **'** ** **** done ** *** **** ***********.
Favor ***** ** *** ***** ****** ** ************* ** * ************ *****
***** ***** ******* ******'* **** *********, Jivanji **** ****** ***** ***** *** just ******* ************* ** ************-***** ****** since **'* ** *********** *** ****** to ***** *** *********** ********* ** such *********:
**'** ******** **** ** ***** ** the ******* *****. * ***** *** my ******** ** ******** ******** ** that **** ****** ******* ***'* **** or *** ****** ** *** ***** stages ** ************-***** ******** ******. * actually **** *** **** *** ***** being ** **** ******* ***** ******* it's ** *********** *** **. ** have * ****** ** ********** **** are ************-***** *** **'** *********** * number ** ********** **** *** ***** from ***-**-*** ******* ****** ** ********** recurring ******* ******.
**'* * **** ***** **** ** scale **** ** ********** *** **** operational ******* ** **** ** ** that. ** ****'* ********* ** ***** do. ** ***** **** ** * breadth ** ******** ******, *** **** subscriptions.
Seeking ****** *********
******'* ********** ****** ******** ********* ** businesses **** "********** ******" ****** **** those ** *** ********* *****. ** realize ******* **** ***** ******-***** ***********, Triton ********* ***** ** ********** ** specific ******** ******* *** ****** ** multiple ******* ****** ** **** ***** it ********* ***** *********. ******* ****:
** **** ** **** ****-**** ***********, and **'* ********* ****** ****** **** sector-level ********** ******. ** **** **** core *******. *** ** *** ******** double-click ** ***** **** *******, ***'* take ********** ********** ** ******** ******** [as ********]. ** *** *** *******, there *** ** **** ***-*********.
******* **** ** ******* ** ******'* focus ** "********* ******** *** ************" and *** *** **** ******** ********** after ************ ** **** ******:
** ******'* ******* **** *** **** 20 *****, *** ****** ********* ****** [that ** **** ****] ***** ********** behind *** ******/***** ****** ********* ******** and ************. **'** ****** ***** * level ** ********* ****** **** ******* space *** *** ******** ****** **** work *** ***'* **** *** *** growth ******* **** **** **** **** term ********* *** ***** **** ** the ********** **** ***** ********** ****.
** ******** ** * ******** *************. ** **** * ******** ***********. ** **** * ******** ***************. **'** **** ****** *** ** the ******* ********** ** **** ***** in ******* **************.
**** ****** ** ** ******** ***** a *** ** ******* ******* *** circles ** ********** ** * ****** specific **** ****** * ******** *****.
******* ********* ******* *** ************, ******* mentioned "********** **********" ** ******* ******* of ******'* *********:
******* ******* ** * ****** ****** industrial ********** **** ** **** ********** Automation. ** ****** * ******** ******************** **** ** *** ********** ****** in *******. ** ****** * ******** **************, ***** ** ****** *** ****** out **** ***** ******* ** *******. ** *** * ******** *******************[*****]** **** ** ******.************** ****** ** *** [********* ***** Exchange]. **** *** ****** ** **** sub-sector **** ** **** ********** **********.
Triton ** ***** ****** ** ************ ** ******** *** ****
********** * ******* ** ********* ********* in ******** ******** **** **** ****** did **** "********* ******** *** ************" and "********** **********" ** **** ****** is "****** ** **" ***, ******* told ****:
** *** **** ***** * ******, [what] **'** ******** ** ***** ** Triton [**] **** **** ****** ** competence *** ***** ** ************* *** expertise ** **** ** **** ******** and ****.
******* **** *** ******'* ******* *********** categorized ***** "******** *** ****" *** its ******** ** ************* *****:
****** ******** *** **** ***** ** have****. ** ************,*** ** **** ** *** ******* a ***** ** * ****** ******** called******'*. ** ***********, ** **** * business *********** ** *********** ** **** ** *** ********* installation ********** **** **** *********** ********* that ** ******** *** ************ *** maintenance. *** ***** **** [****] ** integrator **** *** ****'** ***** ********** businesses.
** *** ****** ******* ******** *** Fire. [******] **** *********** *** ****** of **********, *** ***** ** *** an ************* ** *** **********, *** start ** *** ** ***** ************* of **** ** *** ****** ******, some ** *** ********** ******** *** headwinds **** *** ******, [***] **** of *** ****** ** *** ****** that *** ***** **** *************** *** technology-focused *** **** **** *** **** old ***** *** *** ****** *** that's [*****] **'**. **'** ** *** early ******.
* ***** ** ******** *** **** [we] *** [*****] ******** **** ****** of **********, *** **'* ********* *** ambition.
Why ******** ******** - ********** ******, ****-******, ********** ******, *************
****** ***** ** ****** *** ********** in ******** *** **** ******* ** was "*********" ** *** ****** ************* within *** ******** ******** *****, ********* to *******:
*** ****** ******* ** *** ** we **** ***** *** ******** ******** industry? **** ** ****** ** *****, that's *** * *********** ** ** my ********** ********* *** ** **** it ** ** * *********** *****.We're ****** *********, *** ** *** ** **** ****** ****** *** ************* ** *** *** ***** **** *********** *********, **** *** ***** ******, *** **** *** ***** ****** *******. [Emphasis added]
******* ******* ********** ** *** ******* why ****** ****** ********. *****, **'* because *** ******** ************ ********** ****** in *** **** *** *******, *** physical ******** ******** *** "******* ********":
***** *** ********, *'* *** ** [the] ******** [*****] **** ** **** is **** *****'* **** ********** ********** growth ***** **** ** **** ** many, **** ******* **** ** ********* of ********* *********, [*********] *********, **'** invested ** *** *******, [***] *** public *******, ***.
**** *** **** **-** ***** [**] the ******** ******** ******, **'* **** a ********** ****** ********, ********** ** some *** ******* **** *** ***** American ****** *** **** ** *** larger ******* ** ******* ******. **'* just **** **** **** ** ******.
**** *** ***** ***** **, *** really ***** ** ****, ** ****** to **** ***** ******** ********. ******** is ********* **** ******** *****. **'* almost [****] **** ***'** *** *** basics **** ** ********, *** **** a ***** ***** ** ******** ********. It's * *******-******** ******* *** *******. So *****'* ****** ***** ** ** a ***** ** ********** ******. **** you ***** ** **** ** *** technology ****** **** *** ****** ** this ********, ** *** ****** ************. Fundamentally ** ***** ** **** *** space ******* *****'* ********** ******.
********, ****** ***** ******** ******** ******* it's **** "******" *** "****-******," ***** makes *** ******** **** ********* ** macro-economic ******, ******* ****:
*** ***** ** ****** *** *** do ** ****** ** ********** *** market **'** ********* **, ****** ****** and **** *** **** ****. **** we ***** ** *** ******** ******** space ** **** **'* ***** ******. It's * ****** *********** ********* *** sticky ******** ****** *** ***** ****-******. They're ***** ********* ** ***** ** macroeconomic ******.
****** ** ******** ** **** ** these ********* **** ***'** *********, ** did * *** ** **** ******* at *** * *** ** *** businesses **** *** *** ***** ********* during *** ***** ********* ******. ** 2007, ****, *** ****, ** ***** [that] * *** ** *** ******** businesses *** ******** ***** ******. ** also *** **** ****** *****, ***** physical ******** ********** **** ****** ****** versus **** ***** *******. **** ** another ****** **** ** **** ********* behind.
* *** ** ** *** ** an ********, ***'** *** * ****** bit **** *********** ** **** **** bigger *********** ** ***** ******* ** year ***, **** ***, **** ***** because **** ** * ****** ** coming ******, *** **** ***'** ***** to ** ******* ******* ** *** sticky ****** ** *** ********. **** gives ** * ****** *** ** security ** **** ** **** **** of ***** ********* ****.
*** ***** ****** *** ****** ** choose ******** ******** ** *** ******* technology ****** **** ***** ********** **** gone ******* *******, *** *** ******** security ***** *** **** ******* ** experience. **** **** ******* ************* *** the **** ******. ******* *********:
** *** **** *** ******** ******** is **** **** ******** ** ****** wake ** ** [******* ********** ******]. Many ***** ********** **** ******* **** fully ******, ****'** **** ***** ***** business ****** ****** *******. **** ****** enterprise ********-******* ******** ****** **** ******** and ******** ** * ********* ******* model.
**** ** **** ** * *** of ******** ****** ** ******** ********, the ***** ** ***** ***** ** the ***** *** ** *****'* *** fully *******. * ****** *** **** as * ** ** **-**** *********** for *** ******** ** * *****.
*****'* ** **** ********* *** ** many ******* ** *** ******** ** start ** ****** ***** ******** ******. I ***** ** **** *** ****** their ******** ****** *** ** ** well *** ********, ***** *** **** other ********** ***** **** *** ********, by *** ***, ** ***** ** good ****** *** *** ********. ** could ******** ** **** ****** *** the **********, *** ** ***** ** good ****** *** *** ****** ******** itself **** * ****** ********* ***********.
*** ********** ******, **** ** ****** credentials, **** ********** *** ******** ******** growth, ******* *****:
**** ***** ***** *** ***** **** on-prem ** ***** ** ****** *******. That's ****** ***** * *** ** I ***'* ** **** **, *** we ** *** **** ** * long-term ********** *****. [*** *******,] *** shift **** * ******* ********** ** some **** ** ******, ******-***** ********** or **** ********** ****'** ** ** the *****. **'** *** *** ***** to *********-***** ************ **** ******* *** years *** *** ****'* ***** ** the ***** ****** **** **** ***. There *** ***** ************ **** * feel, *** ****** ***** *** **** going ** **** *** ******** *** take * *** ** ******* **** them *** ********** **** ******* ***** good ****** **** ** ****.
*** ****** ****** ****** ***** ******** security ** * ****** ********, ******* said, ** *** ******'* ************* *** the ********* ** ***********:
** *** ****** ********** ** *** fragmented *** ******** ******** ******** **. It ******* ** **** **'* **** fragmented. ** *** *** **** * long-term ****, ******* ****'* **** *****, ten *****, ***** ** ***** ***** of ********** **** *** **** ********** and **** *** **** ****** **** this, *** *** **** **** ********** trends ************ ******** ******, *** ***** have **** *************.
** **** * ****** ** ****** that **** **** *****'* ***** ** be * **** ** ************* ** this ***** *** ** *** **** as ** ***********. [****'*] *** **'** starting ** ***** * *** **** time *** ***** ** **** ******.
Triton's **** *****
***-******* ********, ****** *********** ** ********* carve-out *****, ************-*** "****** **** ** businesses, ******* ****:
** *** **** ** *** ****** deals *** ******** ***** ** *** from, ***** *** * *** ******* we **** * *** ******** ** corporate *****-****. ** **** * *** [presence] ********** ** ******, *** ** the ********* **** ** ***** ** corporate *****-***.
** **** **, *** ** **** how ** ** **, *** ** can *** *** ***** ***** *** execute ***** *****-****. ****'* *** ****** of *** ***** *** **. *** the ***** ****** ** ************-****, *******-***, family **** ** ******** ******. ** do * *** ** ***** **** fall **** **** ****.
******* *** *** ***** **** ****** deal ***** *** ******, ** **** buys **** ***** ******* ******** ** those *** *** "****** **** ******* in ***** ******," **** ** ********, Jivanji ****:
** *** ****, ** ******, *** from ******* ****** *****. ** ********* do **** ** *** ***** *** camps.
**'** **** ******** ********** ** **** of ***** ******** ****** **** *** seeing **** ******* ** ***** ****** and **** **** ******* ** **** some ** **** ******. ******** ** not * *** ******* *****. ****'** really *** **** *************, *** **** you **** *** *******, *** ** can ********* ** * ******** ** that *******.
******** ** ********** **** **** **** other **** ****** *********** ******
**** ***** ******* ***********, ******* **** *** ********, *** ***** ** **** ** the ************* ****.
******** ** ****** **** **** *** future
*** ***** ** *********** ***** ***** the ************* ** ***********. ** **********, Everon, *** ****** **** ***** ***, it **** ** ***** *************, ************* **** *** $** ******* ****** Revenue,****** *** ** *** ****-*** *** Growth ***** ********,****** **** ** ** *** * Largest ****** ******** ********** (*** *********).
** ***** ** ***** ****** ****'** a ******** *** *******? *** **** building *****
* ***** **** *** ****** ** build. **** **** *** ***** **** Acre *** ** ********* *** *********, see**** ******** ************ ****** ******* *********** (CTO *********)******* ******** ******* ****** (*** *********)
* *** ***** **** ****** ** committed ** ******** ******* *****. **** are ******* ********* *** ******** ** invest ********* **** ******* *** ******* security ******** *** ******** ***** *** all ************ ** *** ********. ***********, end *****, ****, *** ***** ******** providers *** ***** ** *** **** this **********.
** ***** ** ***** ****** ****'** a ******** *** *******? *** **** building ***** ** ****** ********** **? What's *******/******* ***** ****** ** **'* they ******** *** ******* ** *** to ****?
******** ** ********** **** **** **** other **** ****** *********** ******: ********, electricians, ******** ***********, ***... ******** ** change **** **** *** ******: *** barriers ** *****, ****** *********, ****** projects/solutions, ***** *** *******, ***...