Interview with the Founders of Clovis Point CapitalMarch 31, 2021
Recently, we sat down with the Clovis Point Capital founding Partners, Chris Joseph and Robert Shuford, to discuss the origins of the firm, their investment philosophy, as well as learn a little more about them personally.
What prompted you two to start the firm?
CJ: Robert and I saw an opportunity to fill a void in the market that historically hasn’t had much access to strategic capital providers. While a ton of capital has been raised over the last decade to invest in the private markets, there is still a large population of growth stage tech companies that for any number of reasons aren’t a great fit for venture capital, but have also not yet reached the level of scale to attract larger private equity investors either. At the launch of our firm in 2014 we believed – as we’ve now proven – that we could be value-adding partners in this gap, helping take companies to the next level.
RS: And to add some additional context, we first identified this gap in the market while working together at a large investment firm where Chris and I helped take it from about $100M in AUM to over $2B. We decided to branch out on our own to specifically partner with companies within this capital gap.
What differentiates Clovis Point from other firms investing in the same space?
RS: We’re able to bring expertise and sophistication typically reserved for larger enterprise companies to the lower middle market businesses we partner with. Additionally, our flexibility around capital structure allows us to tailor our resources to the needs of our portfolio companies.
CJ: Our thesis is centered around deep partnerships and mutual alignment throughout our portfolio, which separates us from passive and semi-active investors. On top of our in-house playbooks, we utilize our advisory board and proprietary relationships to drive and accelerate value creation.
What do you look for in a management team?
CJ: Passion. Passion not only in the company and its mission, but in its people and customers. This is important because we’re not looking to come in and replace the team but rather to build around it and help fill in any areas of need. This is hard work and if you aren’t passionate and hungry for success, it’s easy to lose sight of your goals. Another key element that we look for is a quantitative perspective – teams that are comfortable managing by the numbers, KPIs, and adaptable to adjust strategy as necessary.
RS: On the way into a new partnership we want to ensure there’s an alignment of interests with the same end goal in mind. We’re looking for management teams who believe in accountability and meritocracy.
Outside of work, what are you passionate about?
RS: I spend most of my time outside of work with my wife and kids, volunteering to be their coach in various sports. We also love outdoor activities like hunting and fishing. Some organizations that I serve with are the ADAMS Association (which raises money for Alzheimer’s, Dementia, and Multiple Sclerosis research), Child Advocates, and the Houston Livestock Show and Rodeo.
CJ: I have a growing family that I try to spend every free moment with, outdoors if at all possible. Some of my community involvement includes my work with the Greater Houston Community Foundation (which helps address homelessness), Candlelighters Childhood Cancer Family Alliance, and the Children’s Museum of Houston.
About Clovis Point Capital, LLC
Clovis Point Capital is a Houston, TX-based growth equity firm that focuses on making investments in software and technology-enabled business services companies. The firm’s relationship-based approach utilizes its experience and expertise to help companies accelerate growth and realize their full potential. For more information, please visit http://www.cpcap.com.