A letter from our founder, Greg Kennedy.
Thanks for your interest in Advection Growth Capital.
Advection's mission is to enable great venture to growth stage companies. We are looking for attractive investment opportunities for Advection and for investors who invest in the companies we support. We believe this is a strong opportunity set, as both the issuers we support and many of the investors we contact are not covered in an organized and consistent way by other firms. Moreover, we commit to actively support our portfolio companies following investment. This support comes in the form of strategic and operating advice as well as access to our network.
Providers of private capital are increasingly diverse — the most important trend being the increasing importance of direct investment by family offices and HNW individuals. We seek to focus on this vast and underserved investor category in addition to accessing traditional institutional investors.
Regarding the merchant banking model, it has a long history on Wall Street. For decades, private partnerships put firm capital into transactions. They aligned interests with issuers and investors by investing in their own transactions. I like this model as it requires good processes and choices on business selection, and I believe it is particularly appropriate in the private capital markets where price discovery is less bounded.
Many are curious about the name “Advection” — and I am glad, because I thought a lot about it. Anyone who has named a business knows how difficult it is. First, I like Advection because it's easy to spell. When you say it, most people get it right the first time. Second, the English meaning — “the transfer of heat or matter by the flow of a fluid” — is a great analogy for high quality growth capital. The Latin root meaning “to bring” or “to carry” fits particularly well with the advisory functions of the firm. Finally, the most famous manifestation of advection in the natural world — the fog rolling in through the Golden Gate — evokes my California roots. As I am fond of saying “I never miss California, because I think about it all of the time.” So, please enjoy these pictures of advection fog on our website. If you have a favorite of your own, please send it to us and we’ll post it.
We look forward to working with you.
Gregory D. Kennedy