January 22, 2016 – Irvine, California   Lotus Innovations, the fast-growing private equity investment firm focused on transforming underperforming small and mid-market enterprise IT and telecom companies, affirmed positive trends for private equity in 2016.  Two of these trends – continued growth in PE and the rise of ‘smart capital’ – are evident in Lotus Innovations’ market-beating success in 2015.

Attributing to the strength of the PE market are high expectations by industry experts that PE should beat key market indexes this year and that PE is a smart strategy to guard against market volatility.  In a recent article titled “Private Equity is Likely to Rise in 2016”, investment magazine Forbes cited a recent survey conducted by ACG, a global association of middle market deal making professionals based in New York, in which 83% of 142 professionals surveyed expect private equity investments to outperform the S&P 500 in 2016.  Lotus Innovations has already demonstrated this type of success by beating the S&P500 in 2015.

“We are extremely pleased with the success of our inaugural Fund I which delivered a 5x return over the S&P500 last year,” said Christian Mack, Managing Director, Lotus Innovations. “Our investors were looking for ways to avoid market volatility, and we delivered a double-bonus when we out-performed one of the leading indexes,” added Mack. 

But diverting funds to PE to avoid market volatility is just one of the trends driving private equity growth.  Certain types of investors are increasingly looking for ways to add value to growing small and mid-market businesses.  The desire to provide capital, while supporting management through a growth phase, so called ‘smart capital’ is trending with capital-rich family offices and individuals.

The Lotus Innovations proprietary platform, as well as a leadership team with a collective 6 decades of experience in high-tech, finance, operations, and banking, appeals to investors that see value in building burgeoning businesses.  The Lotus Methodology, which embeds an experienced management team, provides core business services, and transforms under-performing services organizations to high value software companies, appeals to smart-capital driven investors.

“Our model is unique and appeals to investors looking to not only build wealth but to build value,” said Mr. Mack.  “Because the Lotus team brings such industry depth to the table, our investors can reap the benefits from a ‘smart-capital’ approach,” added Mack.

Lotus Innovations was founded in 2014 with the goal to transform underperforming Enterprise IT Professional Services companies into software-based companies. The investment company’s core philosophy is based on the strong correlation between capital infusion and advisory support. Along with Mack, three other Managing Directors head the fund: Mark Prynn, Philip Jones and David Roman.

Lotus Innovations, located in Irvine, California, is a Private Equity Fund focused on transforming underperforming Enterprise IT Services companies into software-based companies. Their investment strategy and proven operational platform creates a repeatable methodology for success while significantly improved growth prospects, cash flows, balance sheets, and market valuations. By operationalizing a repeatable process with Lotus Innovations’ proprietary methodology and embedded management, the fund creates a new paradigm that accelerates growth and valuations.