As part of our DarcMatter Manager Series, we took the opportunity to interview the team at Infusion 51A LP, about the background of the firm, their strategy, and their management team. For more information, visit Infusion 51A LP’s Fund Profile here on DarcMatter.
What is the history and background of your company, principals and funds?
Infusion 51a was founded on the principal that there are plenty of novel technologies that would thrive if developed yet fail for a variety of reasons. I have personally witnessed therapeutics that work without question and would save lives yet never are developed due to reasons unrelated to the technology. We look for opportunities we feel we can successfully identify the impediments and implement a plan that will solve the challenges that hold the company back from success.
Please explain the investment process for the strategy.
First step is conducting thorough due diligence and determining if and what the path forward will be. It is essential that we understand the current and future roadblocks and proceed only if we have a high degree of confidence that we will be successful in overcoming such challenges. If we proceed, the first step is to secure the proper foundation and control that will ensure we have the authority needed to implement our strategy. We do this by structuring a team that will focus on the proper management and the financial solvency. Once the company is properly positioned, we transition from active operational leadership to more of a board management philosophy while managing the exit process.
You discussed your investment strategy in Question 2. Why should investors consider your fund in comparison to others with similar strategies?
We have put together an exceptional team and group of asset’s that we believe have the ability to outperform. In addition, the current state of our assets is further along in the investment process which can result in lower risk from the inception of the investment and is closer to realization events thus a possibility for short term growth.
How does your fund’s strategy fit within an investor’s broader investment portfolio?
Our fund would fall into the high growth/high risk speculative bracket. By being 3 years old, current investors are entering into a position of the ground floor yet have the advantage of seeing the progress made during that time. Our ability to scale presents an opportunity for investors who are in the accumulation stage of their portfolios to potentially outperform.
Please tell us either your highest conviction idea or trends that you find particularly interesting within your fund’s investment universe.
We are committed to good science with a need, being ran by capable people able to develop and scale.
What are your views on the current macro landscape?
We believe that the macro landscape is shifting. You are seeing an economic transition globally. We believe that there will be a growing focus on fundamentals as the world contracts.
What keeps you up at night?
Making sure that we are exceptional finishers, thus meeting our commitments to our investors.
What are the risks of your strategy?
As a newer fund we focused on starting with a limited number of positions. In the short term, this created a diversification risk. In addition, there is the capitalization and execution risk that comes along with newer funds.
Private Equity investors should keep in mind that investments in early-stage startups have drawbacks such as their high-risk level, limited transferability, long-time investment horizon, illiquidity, and capital calls. There is no guarantee that this investment will meet its investment objectives and this investment bears the risk of partial or complete loss of capital.
Securities offered through North Capital Private Securities, Member FINRA/SIPC.