Blake Nixon

Rational Equity invests in US middle-market software companies in a variety of sectors including: (1) Manufacturing (2) Healthcare (3) Security (4) financial services (5) retail (6) construction (7) compliance (8) business services/outsourcing (9) government (10) entertainment/media and (11) utilities. The firm looks for companies with revenues of $5 million to $25 million and will consider companies with up to $50 million in revenues. Rational Equity targets companies with successful positions in fragmented industries. They prefer to invest in profitable companies but will entertain losses depending on the condition of the company and its ability to move to profitability. Rational Equity also looks for companies with 40% or greater recurring maintenance revenue stream, reasonable customer attrition and low levels of third party and hardware revenue. The firm concentrates on companies with successful positions in industries of $300 million to $5 billion in market size. They prefer to invest in companies that have been in operation for at least 8 years