Why Safeguard
With a nearly 60-year track record of success, Safeguard is a proven leader in providing capital, managerial and operational expertise to growth-stage life sciences and technology companies. We seek entrepreneurs that have a product or service, who want to operate autonomously, but could benefit from additional financing, guidance and resources to grow their businesses, effectively. By focusing on strategic and operational excellence while supporting and augmenting Safeguard's management with our advisory boards, we help our partner companies become leaders in their respective industries.
Safeguard differs from competitors because of its:
- Distinguished Record of Innovation
- Well-Established Brand from more than a Half Century of Value Creation
- Targeted Strategy
- Operational Expertise
- Influence without Necessarily Owning Control
- NYSE Governance and Transparency
- Accomplished and Experienced Management Team
- Diverse Group of Exciting Companies, each with a Track Record of Building Value
Successful Record of Innovation
Since 1953, Safeguard has provided capital and management expertise to hundreds of high-growth, entrepreneurial companies. Safeguard has deployed billions of dollars and created billions in market value through well-timed sales of those holdings.
Safeguard is among the few companies of its kind to be listed on the New York Stock Exchange (NYSE: SFE). Safeguard was the first company to go to market with subscription rights offerings in high technology firms. Safeguard’s success stories include Novell, QVC, Cambridge Technology Partners, Internet Capital Group, CompuCom Systems and Traffic.com.
Safeguard’s current management team has deployed more than $230 million of capital in its partner companies since 2006. In addition, the team has built additional value in and realized approximately $550 million in exit transactions involving current and legacy partner companies and private-equity holdings that represented transactions undertaken by Safeguard’s current and previous management teams. These holdings were acquired by industry leaders such as GE Healthcare, Eli Lilly, Oracle, members of the private equity community, and accredited institutional investors.
Moreover, Safeguard is an established “brand” — a respected institution with an excellent reputation among the entrepreneurial and investment communities. Increasingly, Safeguard is regarded as an innovator in the development of life sciences and technology businesses, a catalyst for value creation, and a key source of capital for entrepreneurs.
Targeted Strategy
Safeguard typically deploys up to $25 million in growth capital in entrepreneurial growth-stage life sciences and technology businesses. In life sciences, Safeguard targets high-value areas of Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine, Specialty Pharmaceuticals and selected healthcare services, which represent lower regulatory risk and near-term revenue. In technology, Safeguard targets recurring-revenue companies in Internet / New Media, Financial Services IT, Healthcare IT and selected business services, which share a “transaction enabling” thesis and are near cash-flow positive.
Safeguard provides capital to growth-stage life sciences and technology businesses that address five general themes — Maturity, Migration, Convergence, Compliance and Cost Containment. These strategic themes tend to drive growth and attract entrepreneurs who need capital, operational support and strategic guidance. Safeguard deploys capital, combined with management expertise, process excellence and marketplace insight, to provide tangible benefits to our partner companies and sizeable gains to our investors.
NYSE Governance and Transparency
Safeguard offers investors increased visibility of financial details, operating performance and strategic direction, compared with traditional private equity and venture capital funds. Safeguard’s status as a publicly traded, New York Stock Exchange-listed, holding company enhances transparency for investors, ensuring accurate quarterly and annual progress reports via SEC Filings, quarterly earnings, analyst reports and equity conference participation. Additionally, Safeguard complies with requirements of the Sarbanes-Oxley Act of 2002. Venture funds and most private equity firms do not have to comply with the regulations that apply to public companies.
Influence Without Necessarily Owning Control
We are typically the primary or largest shareholder in our partner companies. Our percentage of ownership is in the range of 5% to 50%, giving us the ability to influence partner company strategy, direction and operations without actually owning controlling interest. Occasionally, Safeguard will take a majority or a smaller stake in a partner company. Either way, we have a well-defined exit strategy that is established prior to acquiring our interest.
Operational Expertise
Safeguard provides more than capital. Whether it is helping companies build a management team, prioritizing strategic direction, or executing merger and acquisition transactions, Safeguard’s management is an active mentor in building companies. Our partner companies enjoy the efficiencies of Safeguard’s legal, finance, marketing, business development and other infrastructure resources. We provide operational support services and strategic guidance to partner companies based upon the operating experience from our C-level staff.
Accomplished and Experienced Management Team
Safeguard's executives work together as a cohesive, motivated team to deliver decades of experience to entrepreneurs, partner companies and management teams. The Safeguard team has deep domain expertise in life sciences and technology from their careers as entrepreneurs, board members, financiers, and operators, building businesses, and achieving returns for investors. Furthermore, members of Safeguard’s life sciences and technology Advisory Board is made up of distinguished executives who supplement our value-creation initiatives.
Diversification
Safeguard deploys capital in entrepreneurial growth-stage life sciences and technology businesses. In life sciences, Safeguard targets the high-value areas of Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine, Specialty Pharmaceuticals and selected healthcare services, which represent lower regulatory risk and near-term revenue. In the technology sector, Safeguard deploys capital in recurring revenue technology companies in Internet / New Media, Financial Services IT, Healthcare IT and selected business services, all of which share a “transaction enabling” thesis and are near cash-flow positive. This diversified strategy exploits the growth and counter-cyclicality of these two sectors, and provides opportunities for investors to realize value more consistently compared with funds focused primarily on one specific sector.
