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Cambridge Capital - supply chain investing - summary


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Cambridge Capital is a leading investor in the supply chain sector. The firm focuses on transportation, logistics, distribution, technology, and related fields. The team is led by Benjamin Gordon and other executives who have founded, built, advised, and invested in some of the most successful firms in the supply chain arena.

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Cambridge Capital - supply chain investing - summary

  1. 1. Copyright © 2019 by Cambridge Capital No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording or otherwise — without the permission of Cambridge Capital. Cambridge Capital Supply Chain Fund Summary Private and Confidential
  2. 2. - 2 -Private and Confidential Why Cambridge Capital? Overview Cambridge Capital is a private investment firm focusing on high growth companies at the intersection of supply chain and technology. For nearly two decades, our team has been considered a leader for supply chain companies. We began as advisors at BGSA, and then became investors at Cambridge. Market Opportunity ▪ The supply chain sector is a vital market. It represents close to 30% of the US economy. ▪ This industry is large, growing, and fragmented, with over 10,000 target companies. ▪ Asset-light and technology-based companies are particularly attractive, as they are cycle- resistant and grow faster than GDP. Cambridge Capital Cambridge core advantages include: 1. Proprietary insights: unparalleled domain expertise 2. Top team: two decades of operating, investing, and transactional experience together, including proprietary relationships with over 10,000 companies in the sector 3. Track record of value creation: including well-known successes like XPO, Grand Junction, and others
  3. 3. - 3 -Private and Confidential 19th Century: The Railroad 20th Century: The Box 21st Century: The Digital Supply Chain ▪ In 1869, Leland Stanford drove the Golden Spike into the ground in Utah, creating the first coast-to- coast railroad ▪ Railroad fortunes were built by the Vanderbilts, Carnegies, and Flaglers ▪ In 1956, Malcolm McLain refitted an oil tanker to carry 58 shipping containers from Newark to Houston ▪ Containerization helped fuel the fortunes of shipping and trucking empires like Maersk and JB Hunt ▪ “The Amazon Effect” sparks a new ecosystem in automation, e-commerce fulfillment, and the digital supply chain ▪ New billion-dollar winners emerge, including Uber, GENCO, Descartes and XPO Proven opportunities to build multi-billion dollar fortunes over time Why Supply Chain?
  4. 4. - 4 -Private and Confidential Electric Theme Insight Examples The Future: Key opportunities in today’s supply chain Our Investment Thesis The Uber model is transforming entire industries, based on a 160 million- strong “gig economy,” and with broad applications in transportation. Shared Economy Connected Autonomous E-commerce/ Digital Logistics Consolidation Globalization Last Mile “The Amazon Effect” is driving new supply chain models, and producing 23% growth in the $10 billion same-day/last-mile market As global trade grows, the demand for dense global networks is increasing, creating opportunities in cross-border logistics In the fragmented world of logistics, the top 50 control just over 50% of the market. XPO showcases how to consolidate it. Ecommerce is a $2 trillion market, growing at 16%. This produces opportunities for new logistics models in digital logistics. Self-driving trucks have already appeared, led by truck safety and fuel applications. Level 4 self-driving cars are less than 2 years away. Connected cars are a $30 billion market growing 6x in the next 3 years. We see opportunities in connectivity and in transport cybersecurity. Electric vehicles are becoming cost-competitive, fueling 30% growth in vehicles, infrastructure rollouts, and new supply chain networks.
  5. 5. - 5 -Private and Confidential Team of Experts in Supply Chain Deep domain expertise Cambridge Capital Team Cambridge Capital Advisors Benjamin Gordon – Partner ▪ Founder, BGSA ▪ Founder, 3PLex ▪ Yale BA, Harvard MBA ▪ 17-year history with the firm Dave Stubbs – Partner ▪ Previously Kuehne + Nagel Lead Logistics ▪ Built company from 0 to $400M ▪ Haverford BA, Wharton MBA ▪ 17-year history with the firm Shai Greenwald – Director of Business Development ▪ Previously FleetBoston Financial, EMC ▪ Built BGSA’s business development ▪ Boston University MBA ▪ 17-year history with the firm Matt Smalley – Vice President ▪ Previously Macquarie Capital, Insight Venture Partners ▪ $1 billion of executed private equity investments ▪ NYU Stern BS ▪ 8-year experience as an investor Jack Holmes – Senior Advisor Former President, UPS Freight Herb Shear – Senior Advisor Former CEO, GENCO (now FedEx) Gene Tyndall – Senior Advisor President, MonarchFx; Former President, Ryder Logistics Paul Svindland – Senior Advisor CEO, Celadon Doug Waggoner – Senior Advisor Chairman and CEO, Echo Global Logistics Rimas Kapeskas – Partner ▪ Former VP Strategy and Managing Director, UPS Strategic Enterprise Fund ▪ Univ of Connecticut BS, Emory MBA ▪ 34 years logistics experience ▪ 9 years investment experience
  6. 6. - 6 -Private and Confidential Partnering with Companies Ready for Future Growth Differentiated Technology Outstanding Management Strong Growth Orientation Investment Characteristics and Underwriting Parameters ▪ Preferred Investment Size: $10-50 million equity investments ▪ Ownership: Comfortable investing in a majority or minority capacity ▪ Use of Proceeds: Growth capital, strategic initiatives, acquisitions, and shareholder liquidity ▪ Partnership Approach: We invest in partnership with management to add tangible value Logistics Distribution Last-MileTransportation Automation Investing in Successful Businesses Across All Segments of the Supply Chain ▪ Companies that employ technology to drive differentiation ▪ Disruptive business models and a unique offering in the market ▪ Category leadership, first-mover advantage, or other barriers to entry ▪ Top-notch management teams with clear vision for future growth ▪ Experienced leaders with demonstrated ability to achieve growth and profitability objectives ▪ Profitable, growing companies ▪ Strong base of recurring revenues and positive cash flows ▪ Well positioned to accelerate further growth and gain market share A unique sector-focused strategy in the supply chain Cambridge Capital Investment Criteria