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A History of Focus and Results
Frontier Capital was founded in 1999 to provide capital and support to high growth business services companies. At the time, many of these companies were being overlooked by both investors and lenders. Many investors felt business services did not have the allure of high-tech venture investments and lenders were more interested in asset intensive, traditional businesses. We recognized an opportunity to help fill this void by focusing our investments on a sector that we believed would benefit from the rise of the service economy and a growing trend toward outsourcing.
As the business services sector has grown over the years, our focus has resulted in a successful track record for both our investors and management partners. Frontier has emerged as a leading partner for high growth business services companies and we have assembled a portfolio of investments in leaders across a variety of industries.
What are we like to work with? Just ask the Founders and CEOs of our Portfolio Companies, they are our best references!
Frontier Capital Overview -
Building Value Through Growth
Frontier Capital is a growth investor. We partner with rapidly growing business services companies to help further establish them as industry leaders. Our investments result in strong balance sheets and enhanced access to resources that help companies take full advantage of their growth opportunities.
Our history of growth equity investing provides a deep understanding of the opportunities and challenges faced by high growth companies. This experience uniquely positions Frontier to help with key initiatives such as developing focused strategic plans, attracting additional management talent, further institutionalizing or investing in sales and marketing, enhancing existing service offerings or considering new markets or acquisition opportunities.
The growth equity investments we make do not rely on the use of leverage to generate returns and include both minority and majority ownership positions. In addition to growth capital, Frontier will provide shareholder liquidity for founders, and early or non-active shareholders. -
Business Services – That’s All We Do!
Since 1999, Frontier has built an excellent track record focusing on investments in business services companies. This focus is a key component of the Frontier Advantage. Within business services, we seek partnerships with companies that leverage technology, information assets or a unique business process or strategy to deliver value to their customers. These companies have deep relationships with enterprise customers that result in predictable, high quality revenue and high gross margins. The Frontier Portfolio reflects this focus as well as our experience investing in both labor based and technology enabled business services companies.
Examples of business services sectors we have previously invested in or are currently considering include:
- Software as a Service (SaaS) SaaS Overview
- Niche Inbound Call Centers
- Outsourced Payroll and Human Resources
- Information Technology and Managed Services
- Outsourced Billing and Revenue Cycle Management
- Internet and Information Services
- Healthcare Information Technology Services
- High Value Business Process Outsourcing
- Communications Services
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Navigating the Inflection Point
Frontier invests in rapidly growing business services companies that have reached an inflection point where a growth equity investment can create significant value for shareholders. The companies we target for investment have the following characteristics:
- Technology and Software Enabled Business Services
- $5 - $25 million Equity Investments
- $5 - $30 million in Revenue
- 20%+ Annual Revenue Growth Rates
- 35%+ Gross Margins and Proven Profitability
- Seeking Minority or Majority Growth Investment
The proceeds from our investments are used to fund key growth initiatives or shareholder liquidity. Growth initiatives may include increased investment in sales and marketing, opening new facilities, enhancing existing service offerings, developing new market opportunities, recruiting additional talent or completing complementary acquisitions. Shareholder liquidity may include proceeds for non-active shareholders, early investors or founders seeking a partial or complete exit opportunity.