DFA Capital Management Case Study

Background:

DFA Capital Management (DFA) is the leader in Enterprise Risk Management for the insurance industry with its Advanced Decision & Value Simulation Engine. In April of 2004, Longworth led DFA’s Series A funding.

“Our research showed that the risk management solutions currently in use within the large insurance companies were complicated, home-grown and inflexible — and unable to keep pace with the industry’s changing needs,” says Longworth’s Peter Roberts. “The DFA team is among the world’s foremost experts in high-end risk management and it saw the need for a true enterprise-class software solution. We believed that the DFA’s deep domain experience and Longworth’s company-building experience was a winning combination that could capitalize on a very large market opportunity.”

“Longworth had exactly what we were looking for in an investor — a successful track record, strong operating experience, and the ability to help us build our company,” says Markus Rohrbasser, Chairman and President of DFA Capital Management. “In fact, in the midst of our financing discussions, we won a multi-million dollar contract from a major customer and had the option to not take venture capital. However, we recognized that Longworth would bring a lot more to the table than just capital.”

Adding Value:

Since joining the board, Peter Roberts recruited an outside director with deep, relevant experience: Dave Stoner is the former CEO of enterprise software leader Caminus Corporation (acquired by SunGard Data Systems). He also worked closely with Markus to recruit Dean O’Hare, the former Chairman and CEO of Chubb Insurance. In addition, Peter identified and recruited an experienced and successful senior vice president of worldwide sales.

Results:

DFA has booked more than $15 million in new orders in the last 12 months and is poised for continued strong growth.

Software Portfolio Companies