The Strategic Group (“TSG”), founded in 1996 and based in Dorado Beach Puerto Rico since 2013, represents the private equity side of the business. TSG was founded as a boutique, multi-national private equity firm that acquires, invest, develops and successfully operates companies across a multitude of diverse industry types with our core competency being technology, bioscience, fintech and hedge fund industries among others. 

The organization was built upon a foundation that centers around three core values—honesty, loyalty, and performance—and the mentality that we provide opportunities for stakeholders rather than jobs for employees. We invest not only in companies, but also in our stakeholders by promoting personal growth and professional development while fostering an environment that encourages sharing with others.

Our value add is in our Human Capital, even more so than financial capital, which is a commodity. Our team has been cultivated over 25 years and is made up of experienced professionals in Finance, Capital Markets, Quantitative Analysis, BI (Business Intelligence),  IT (with almost 30 professional front, back end and full stack programmers utilizing SCRUM and AGILE methodology),  Human Resources, Marketing, FP&A, 3 in–house attorneys specifically with Securities and M&A experience, a full accounting department including 3 CPA’s with specialty in International Tax and Transfer pricing, as well as Project Managers and a cadre of other professionals outside the firm that we regularly have worked with for many years.

TSG focuses on companies primarily in Finance or Technology arena, but have also done opportunistic deals in Real Estate, Biotech, Payment Processing, and Litigation Finance among others. We typically target companies with $5MM-25MM in revenues and a minimum target of $1MM in EBITDA in niche areas with some discernible competitive advantage usually involving proprietary elements to sustain margins and erect barriers to entry from competition. We do not invest at the VC stage. We normally take 100 percent stakes in companies we invest in and offer synthetic equity to founders and other key stakeholders, which helps them retain upside while TSG retains full control. In rare cases, TSG takes smaller but still controlling positions with options to purchase the minority position based on pre-established metrics.

We are a metrics oriented firm, and use proprietary software to rate stakeholder interaction in meetings as well as daily interactions to build a profile of intelligent decision making and reach effective consensus on important decisions with an emphasis on subject matter experts (SME’s) for weighted decision making. It is important to track errors made on deals, as well as the successes, in order to identify systemic issues, and we also use software to document the responsible party and corrective action needed in order to minimize repeating mistakes. We also follow plan vs. actual by creating and monitoring OKR’s (Objectives and Key Results), which are measured quarterly and subscribe to a philosophy of binary outcomes.

This collectively is our EDGE and what sets us apart from other firms.  It is what allows us to take companies that are typically founder-based to the next level, by putting our TSG wrapper around a growing and profitable entity in order to help manage and scale a small but growing company in a way a typical founder cannot without the requisite experience and resources.

This is the TSG way.