• We see value where
    others do not.
    And build value in
    ways others cannot.

  • $20+ billion: Enterprise value of
    investments closed.

    $70+ billion: Transaction level
    revenue data analyzed.

PHILOSOPHY

Transforming Investing Through Data Science

$20+ Billion

Enterprise value of investments closed

$70+ Billion

Transaction level revenue data analyzed

25 Years

IP and research in data science

Growth. This is often the most misunderstood and mispriced aspect of fundamentals-based investing. Despite their best attempts, market estimates, sample polls, and surveys do not provide the complete picture of company growth and many times project the wrong conclusions. We see the current explosion of data as a watershed moment for investing. Investors can unmask the intrinsic value of companies by harnessing the power of Data Science. Popularized in Silicon Valley, Data Science is an innovative discipline used to liberate and create meaning from raw data.

Two Six Capital has pioneered Data Science for Private Equity. We combine the power of large scale Engineering and Statistics to make smarter investment decisions and build value. We have built a Cyborg – the combination of hypotheses-driven human judgment coupled with large scale machine driven statistical analysis. This allows us to see the value where others do not, and create value in ways others cannot.

Two Six is founded on over 25 years of intellectual property and research in Data Science. The firm’s innovative process has been applied to over 30 companies in partnership with top-tier global private equity institutions. We have participated in marquee growth buyouts whose combined enterprise value exceeds $20 billion. The Two Six Platform has accumulated knowledge stored in over $70 billion of granular transaction-level data, the largest scale in the private equity asset class.

To learn more about our founding story, click here, here, and here.

"What Two Six Capital has done is recognize that whether you have 100 customers or 10 million customers, you make profits one customer at a time. In today’s data-rich and fast-computing world, this philosophy is monetizable, and Two Six Capital is using state-of-the-art methods to accomplish it"
- Professor Eric Bradlow, Wharton

PROCESS

Two Six Capital has pioneered Growth Buyouts Powered by Data Science by building the world’s most granular, bottom-up revenue model. Our big data platform ingests granular “digital receipts”, unpacking the fundamental operating drivers of the business. This allows us to understand and project revenue growth by individual customer, product SKU, and channel. Our investment process spans the entire private equity lifecycle in both proprietary situations and formal banker-led processes. Our involvement ranges from pre-investment commercial diligence to providing board level insights post-investment, and determining optimal exit horizon. The dynamic permutations of cohorts inform investment committees, lenders, ratings agencies, and LPs underwrite to well-substantiated leveraged investment decisions.

DATA SCIENCE

Understand the past and forecast future business drivers using statistics.

Advanced analytics platform built for investment due diligence and value creation.

Scale and speed: Granular transaction-level data ingestion and high frequency analyses using proprietary models.

PRIVATE EQUITY

Investment due diligence, co-investment, and value creation for portfolio companies utilizing big data.

Revenue projections based on unit-level company growth and quality of customers, products, and channels.

Optimized equity and debt structure based on lifetime value (LTV) of customers and products.

INDUSTRIES

Applicable to any company that has any ONE of the following characteristics: Large number of customers, products, or channels.

  • Retail/Consumer
  • Technology
  • Business Services

TEAM

Investment conviction through a unique combination of Investors, Consultants, Data Scientists, and Data Engineers.
World class research developed at The Wharton School, University of Pennsylvania.
Two Six Capital serves on the Advisory Board of the Wharton Customer Analytics Initiative.


"Wharton marketing professors Eric Bradlow and Peter Fader are known as world experts in analysing consumer data to predict and formulate business strategy"
- Financial Times


ADVISORS

CONTACT

Recognizing data is an underutilized corporate asset, we bring Data Science domain expertise as a differentiated weapon to private equity investing. We work with two stakeholders: top-line growth oriented private equity firms and management teams deluged in data but starved of insights. Our human judgment starts by asking the right investment questions, identifying which hypotheses prove or disprove an investment case, and determining how value can be increased in a target asset. Collectively, we unlock actionable insights from internal company data to realize full business potential and drive higher returns.

Let’s talk

TWO SIX CAPITAL

201 California Street, Suite 440

San Francisco, CA 94111

EMAIL

info@twosixcapital.com

Copyright© 2017 Two Six Capital LLC

All rights reserved.