Investment Approach
Incyte Capital Holdings LLC has a highly successful 10-year track record of private equity investing in the middle market. Incyte has maintained throughout its history a particular emphasis on turnaround and recapitalization control transactions.
Industries of interest include telecommunications, technology, energy, basic industry, healthcare and business services, although most sectors are considered. The firm seeks to invest for control in companies with proven revenues, an attractive core business and strong management. Incyte typically invests alongside its limited partners and management and strives to create an alignment of interests among all the parties to an investment.
Incyte seeks to invest at an attractive valuation in revenue-generating companies with strong management and an attractive core business and invests in two to four companies annually. The firm is led by investors with significant experience in valuation, restructuring, recapitalization and turnaround situations.
What sets Incyte Capital apart is its keen focus on the stage of development and capital funding needs of its investment prospects. Incyte Capital is interested in established companies which are experiencing temporary illiquidity, insolvency, or suboptimal ownership, and considering new funding leading to a change of control.
Since its founding in early 2000, Incyte has applied the same six proprietary investment criteria to virtually all of its investment activity. While these criteria have been refined over the years, the same fundamental core focus and discipline which has lead to Incyte’s extraordinary investment success remains in place and guides our investment decisions.
The firm invests in companies with revenues between $20 million and $250 million at the time of investment. Incyte undertakes a rigorous screening and due-diligence process before bidding on a company. Incyte is an active investor, taking a controlling interest and Board seats after making its investment. Management typically finds Incyte to be an extremely helpful and valuable investor, providing guidance and support in areas such as capital structure, governance, finance and other key corporate matters.
Incyte Capital is a direct, long investor in companies that seeks to create value through active management and appropriate capitalization. The firm does not trade securities, engage in hedging activity or typically take minority positions.
Once Incyte bids on a deal, the firm will strive to not renegotiate the deal terms. Incyte Capital has in the past acted as a back-up bidder in selected situations. Given its history and investment discipline, once involved in the termsheet stage, Incyte offers companies seeking new investment capital a very high likelihood of closing.