PlumpTree Capital

Corporate / Overview

Plumtree Capital Management LLC is a Public-Venture Fund management company based in Miami, Florida, which makes principle investments into early-stage public companies in the micro-cap sector, through its onshore and offshore funds.

We seek to consistently generate high-reward/low-risk returns for our investors through a disciplined and proprietary investment strategy, and to create a success environment for our portfolio companies within which to execute their strategic and business objectives.

In order to generate high-reward returns, we have developed the following investment strategy:

We invest in management which share our belief

• Vision-Experience-Integrity are essential qualities

• Management’s primary function is to increase shareholder value

• External communications are as important as internal operations

We invest in companies which have the potential for high-growth

• Early-stage with a low valuation

• Large or rapidly growing sector

• Products or services with a strong competitive advantage

• Effective sales and marketing strategy

We invest in companies which have a compelling, current, and understandable story, in sectors which include but are not limited to:

• Alternative Energy and Oil & Gas

• Defense and Homeland Security

• Technology and Internet

• Specialty Retail and Services

We invest when we can arbitrage the private-versus-public multiple, invest at a deep discount to the public market, or achieve exceptional warrant coverage

• Private-to-public arbitrage is typically a 2-to-4 times return

• Discount to the public market is typically 50%

• Warrant coverage is generally equal to or greater than 100%

 

In order to achieve low-risk returns, we have integrated the following criteria into our proprietary investment model

• We invest in companies with a liquid stock, over an extended period of time, and with unlimited demand registration rights

  • Typically, management invests in a long-term investor communications campaign in order to grow the shareholder base and increase liquidity

  • Funding generally takes place over the course of one-to-two years

  • Investments are structured to become liquid very quickly

• We invest when we can exit from a portfolio company investment within three years or less, and when we understand the characteristics of the outstanding securities and the principal shareholders

  • While a company is in its highest growth phase

  • Before projections and assumptions become unpredictable

  • With a strong understanding of the float, the amount and timing of registrable shares, and any lock-up or bleed-out provisions

• We invest enough capital for a company to successfully execute both its internal business strategy and its external communications strategy, while tying funding to the liquidity of the company’s shares

• • Total investment per company is typically between five hundred thousand and one million US dollars, but can be more or less

  • Funds are generally used to executing both the internal business strategy and the external communications strategy

  • Size, pricing, and structure of funding is tied to liquidity

• We invest with strong representation on the Board of Directors throughout the term of the investment, and/or protective covenants and provisions designed to safeguard the investments and mitigate risk

  • Representation on important committees of the Board of Directors

  • Anti-dilution protection; price-protection; restriction on issuance of debt or preferred stock; restriction on self-dealing; restriction on transfer or sale of assets; etc.

  • Lock-up or bleed-out provisions for principle shareholders

 

For additional information about Plumtree Capital Management LLC, please visit our website at www.plumtreecapital.com, or contact us at (305) 851-3236