How Grata Revolutionized Recognize’s Investment Sourcing

In the dynamic world of investment, Recognize, a private equity fund focused on investing in technology services, faced the challenge of effectively segmenting and identifying companies within their target tech services sub-sectors. Jack Berney, a Principal at Recognize, shares his insights into how the firm transformed its sourcing and diligence processes with the help of Grata, an innovative deal sourcing platform.

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The Challenge

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As a newer firm, Recognize sought to create a distinct foothold in the competitive landscape of technology services investment. However, Jack and his colleagues encountered some hurdles in their workflows. Says Jack, "We found it challenging to segment companies and identify similar companies to the ones that we were explicitly targeting." This bottleneck was primarily due to issues related to interface usability, data sources, and data quality with their previous tools. 

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The Solution

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After evaluating various alternatives, Recognize chose Grata as their go-to platform for sourcing and due diligence. "Grata was an out-of-the-box manifestation of what we wanted," says Jack, pointing to its dynamic list-making capabilities and AI-enabled insights as key differentiators. Unlike previous tools, Grata offered a user-friendly interface, continuously updated lists that corresponded with Recognize's investment themes, and an integrated workflow all housed within the platform, coupled with important data privacy controls.

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Why Grata?

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Grata stood out for several reasons. It wasn't just the solution to Recognize's immediate challenges of segmentation and identification but also the platform's potential to enhance their entire investment process. "What I love about Grata is that my entire workflow is saved in the platform," Jack emphasizes. Furthermore, Grata enabled Recognize to benchmark comparable companies, thus extending its utility into deeper diligence and strategic analysis.

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The Results

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Grata has become an indispensable tool for Recognize, particularly in building M&A lists for their portfolio companies—a task that was previously not feasible with other platforms. "Grata has been indispensable because we would not have been able to do everything we can do in Grata with other platforms," Jack explains, highlighting the platform's impact on Recognize's strategic initiatives. Although still early days in their adoption of Grata, the platform offers strong potential to deliver ROI, whether through closed deals or strategic insights.

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Recognize's journey with Grata illustrates the transformative impact of selecting the right tools. By streamlining their sourcing and diligence processes, Recognize has not only overcome immediate tactical challenges, but also positioned their team for greater efficiency and strategic depth in their investment activity as they pursue great outcomes for their investors.

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