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Portfolio Philosophies
All American Capital is able to achieve exceptionally high
rates of return, fast portfolio turnaround times, and greater diversification by
applying a variety of innovative methods in the following areas:
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aggressive, honed searches for the best ventures,
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deal structures that provide multiple tangible
safeguards,
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greater portfolio diversification by not needing to
devote excessive capital to any particular venture,
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placement of executives in each venture who have
successful Wall Street experience,
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mechanisms to promote profoundly the likelihood and
speed of going public, and
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active involvement in each venture to foster going
public and/or being acquired successfully.
Unlike many venture capital firms wherein the managers wait
for friends to bring them deals (and then make compromises on quality due to a
limited deal selection), we actively and focally solicit venture opportunities.
We participate in trade associations and proactively contact the most prolific
scientists and entrepreneurs in high-profit niches. We participate with
networks of prominent leaders in pharmaceutical, financial, medical, and other
industries.
To make an intelligent decision about the commercial
viability and risks of each venture, a specialized expert in the applicable
industry niche is typically consulted. Examples include sub-specialist
physician researchers; prolific engineers who are active in the relevant field;
and successful, street-savvy marketers.
We generally hold controlling interest in each venture in
which we make a substantial investment.
Our management team has maintained successful performance
records in a wide variety of industries. Our intensive and broad experiences
enable us to foster businesses in the full spectrum of phases: seed, early
stage, late stage, and turnarounds. The primary characteristic that we seek is
a reasonable capacity for going public within twelve to eighteen months before
any substantial investment is made. Due to the explosive profit opportunities
and often rapid turnarounds and because we seek commercially viable businesses
in pharmaceuticals, medical devices, and pathology, applied biomedical
businesses are expected to comprise the majority of our invested funds, but we
are open to honorable businesses of any industry that can provide relatively
rapid exit strategies, relatively low risk, and extremely high profit margins.
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