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Capital Deployment Model
For Investors
Navigate Capital deploys capital across three synergistic portfolios to create exponential value. Our model targets 35%+ IRR through systematic acquisition and technology integration.
Fund Overview
Target Fund Size
$50M
First close: $25M
Target IRR
35%+
Net to LPs
Fund Term
7+2
Years + extensions
Target Deals
10-15
Portfolio 3 acquisitions
Capital Allocation Strategy
Portfolio 1: Foundation
Infrastructure and expertise
15%
of total capital
Datacenter:$5M
Agents Platform:$2M
Advisory Coalition:$500K
Provides leverage for all portfolio companies at cost
Portfolio 2: Products
Battle-tested SaaS platforms
20%
of total capital
Product R&D:$7M
Go-to-market:$2M
Working capital:$1M
Generates recurring revenue and powers Portfolio 3
Portfolio 3: Acquisitions
SMB service companies
65%
of total capital
Acquisitions:$30M
Integration:$1.5M
Working capital:$1M
Drives majority of value creation and returns
Deployment Timeline
Y1
Year 1: Foundation & First Acquisitions
Deploy $25M (50% of fund)
Q1-Q2
- • Build out Portfolio 1 infrastructure
- • Launch 2 Portfolio 2 products
- • Close first 3 Portfolio 3 deals
Q3-Q4
- • Complete first integrations
- • Close 2 additional Portfolio 3 deals
- • Demonstrate 12-month ROI
Capital Deployed
$25M
5 acquisitions @ avg $3M
Y2
Year 2: Scale & Refinement
Deploy remaining $25M
Q1-Q2
- • Scale proven integration playbook
- • Launch remaining 2 Portfolio 2 products
- • Close 3 Portfolio 3 deals
Q3-Q4
- • Close final 2-3 Portfolio 3 deals
- • Optimize operations across portfolio
- • Prepare for exits (Year 3-5)
Capital Deployed
$50M
10-15 total acquisitions
Y3-5
Years 3-5: Value Realization & Exits
Strategic exits at premium valuations
Exit Strategy
- • Strategic sales to larger PE firms
- • Platform roll-ups within verticals
- • Public company acquisitions
Value Multiple
- • Buy at 4x EBITDA
- • Grow EBITDA by 2x in 24 months
- • Sell at 6-8x EBITDA (tech premium)
Target Returns
3-4x
MOIC over 3-5 years
Representative Deal Economics
Entry (Year 0)
Purchase Price:$4M
Revenue:$5M
EBITDA:$1M (20%)
Entry Multiple:4.0x EBITDA
Integration Cost:$150K
Total Investment:$4.15M
Exit (Year 3)
Revenue:$8M (+60%)
EBITDA:$2.4M (30%)
Exit Multiple:6.5x EBITDA
Enterprise Value:$15.6M
Less Investment:($4.15M)
Profit:$11.45M
3.8x
MOIC (Multiple on Invested Capital)
56%
IRR (Internal Rate of Return)
2.4x
EBITDA Growth (from $1M to $2.4M)
Risk Mitigation Strategy
Proven Technology
Portfolio 2 products are battle-tested with real customers before deployment to acquisitions. No experimental technology.
Rapid Integration
30-90 day integration vs 6-12 month industry standard means faster time to value and reduced execution risk.
Domain Expertise
Advisory Coalition brings deep vertical expertise to every deal, ensuring we understand industry dynamics and risks.
Profitable Targets
We only acquire profitable companies with strong fundamentals. Technology accelerates growth, not rescues failing businesses.
Diversification
10-15 acquisitions across 7 verticals reduces concentration risk while maintaining vertical expertise.
Revenue Focus
Value creation through revenue growth, not cost-cutting, means more defensible returns and sustainable businesses.
Ready to Join Navigate Capital?
We're raising a $50M fund to execute this proven model at scale. Minimum investment: $500K. Request our full investment materials and confidential private placement memorandum.
Investment disclaimer: This information is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Past performance is not indicative of future results.