Founded in 1993, Triple Point Technology is a leading provider of
software information products for the global trading and risk
management of commodities. Triple Point is a vital partner to its
worldwide customer base, including Citgo, Cargill, UBS, Irving Oil and
Glencore among others, whose need to manage commodity exposure has
grown dramatically particularly in today’s market of high commodity
prices and tremendous market volatility.
In the summer of 2006, ABRY was introduced to the Company through a
banker with whom we had a twenty year relationship. Triple Point had
become highly successful and profitable and the Company’s founders were
seeking some liquidity, but were not willing to sell the business
outright as they perceived significant future upside. Triple Point
management also wanted an experienced partner to help them navigate
their next phase of growth. We were seen as an ideal partner, with
nearly twenty years of experience helping portfolio companies with
operations strategy, financings, add-on acquisitions and exits.
From our perspective, Triple Point embodied all
of the characteristics we embrace: a high percentage of recurring
revenue, substantial switching costs that create significant barriers
to competition, high operating leverage, low capital needs creating
strong free cash flow, and significant growth potential.
We proposed a creative solution where the
Founders sold a portion of their shares in the Company while retaining
substantial upside in the future success of the business. At closing,
ABRY purchased all of the shares of one retired partner as well as a
significant portion of the shares owned by the management team that was
staying on. Since the time of our investment, the Company has more than
doubled EBITDA through organic growth and with our help executed two
highly accretive, tuck-in acquisitions. The future looks very bright
for this rapid growth company led by a young, talented and aggressive
management team.