How does the ability to innovate factor into your decision when selecting a new
MN: We look to invest in market leaders with strong track records of innovation and growth.
We spend considerable time assessing a company’s history of introducing new, inventive
products and services that allow it to create long-term customer relationships and above-
A great example of innovation is the introduction of a reduced weight, ultra-thin wall plas-
tic package from our newest company, Technimark, which we acquired in April 2014. This
new packaging product allows Technimark’s customers to reduce costs and offer a unique,
environmentally friendly solution to the market.
Eventually, we want all of our companies to be billion-dollar-plus enterprises. They need
to demonstrate that their markets have this potential and then create growth opportunities
through innovation that result in new products or capabilities that allow them to reach that
How does Pritzker Group help its companies innovate? In addition to capital,
what kinds of resources do you deploy?
MN: First, our private, permanent capital base allows our companies to invest in developing new products and services that have longer-term paybacks. Pritzker Group can accept
short-term earnings dilution in exchange for enhanced long-term opportunity. We also use
conservative levels of debt, which give flexibility for our companies to invest in innovation
and new product development.
Management teams run the day-to-day operations of our companies. However, we have
a team of operating partners, senior advisers and an operations support group, as well as
Tony and J.B., who encourage our managers to think outside the boundaries of their current businesses so they can develop into global market leaders. We spend our time thinking
about long-term strategic growth, not planning for an exit.
Do you cross-fertilize ideas among your companies, and if so, can you provide
an example or two?
MN: We absolutely do. Pritzker Group hosts regular CEO forums, in which all of our CEOs
are encouraged to share best practices. We not only share ideas among Pritzker Group Pri-
vate Capital companies, we also discuss new opportunities and innovations with the high-
growth technology companies in which Pritzker Group Venture Capital invests.