Guiding principles.
We help turn good software companies into great businesses. But we are not for everyone — we have some guiding principles in our investment decisions that are core to us.
B2B software
Mission-critical solutions
50%+ recurring revenue
Growing market
Ability to scale
Sector where Tern can add real value
We take a controlling stake at the outset and work hands-on with management to drive value.
We invest in businesses in the UK and Ireland. We will selectively invest in other countries in Western Europe where we can add value.
Three ways we partner.
We are open to any type of transaction — from outright sales to MBIs, buy-and-builds and carve-outs. The businesses we see typically fall into one of these buckets.
Buy & Build
Platform investments in profitable software companies, with capital and operational support to acquire and integrate complementary businesses.
- Recurring Revenue
- £0.5–4M ARR
- EBITDA
- £0.5–3M EBITDA
- Focus
- Public sector, healthcare, retail/supply chain, media & entertainment
Carve-Outs
We work with corporates to acquire and rebuild non-core software assets — turning orphaned products into focused, growing businesses.
- Recurring Revenue
- £1–4M ARR
- EBITDA
- £0.5–3M standalone EBITDA
- Focus
- Non-strategic assets of a corporate
Scale-up
Growth capital for software companies with proven product-market fit looking for an operator-led partner to accelerate.
- Recurring Revenue
- £1M+ ARR
- EBITDA
- No EBITDA requirement
- Focus
- Funding to drive growth
Buy & build verticals
We are focused on eight core verticals and the niches within them. Select a vertical to see the niches we know best.