investment objective is significant long-term appreciation in venture capital
investments, emphasizing the opportunities originating in the State of Hawaii.
Global markets are increasingly a major factor in the growth of companies. HMS
uses the relationship with the University of Hawaii and other Hawaii sources
and the international relationships of the general partners, limited partners
and affiliates to provide a flow of investment opportunities and to facilitate
the development of portfolio companies through such activities as the transfer
of technology and development of joint ventures.
We invest in privately held companies. HMS balances the investments by investing
in companies at different stages of development, in different market areas,
industry segments and technologies.
Our preference is to invest by participation in an investment syndicate including
two or more additional venture capital investment firms and to stage investments
to the portfolio company's achievement of predetermined performance objectives
HMS makes investments anticipated to result in exceptional returns. Therefore,
investment candidates should demonstrate strengths in a majority of the following
Management: The portfolio company should have a disciplines, aggressive
management team with relevant experience and which will benefit financially
from the success of the company.
Competitive Advantage. The portfolio company should have a signnificant
price, performance or lead-time advantage over competing technologies and businesses.
A competitive advantage allows the operating margins that are necessary for
continuing growth. The advantage can arise from a proprietary market position,
management expertise, technology or product base.
Market. The portfolio company's targeted market should be of sufficient
size and have domestic and international potential to allow for significant
growthin sales and earnings
Investment Valuation. The valuation should reflect the risk of the investment
and be consistent with the Partnership's investment objectives of achieving
an exceptional long-term return.
Exit Strategy. HMS gives specific consideration to the available choices
for realizing the gain in value of the portfolio company.
Suitable investment opportunities will be sought principally within the State
of Hawaii. As part of establishing a "Hawaiian" Fund within the venture
capital community, as much as one-third of the capital may be co-invested with
other venture capital funds in portfolio companies that are not based in Hawaii.
HMS provides balance to the portfolio by investing in companies at different
stages of development, different technologies and different market areas.