First Data Review: Fintech Private Equity Investment Focus, Portfolio & Deal Criteria

In-depth review of First Data: investment thesis for fintech companies, portfolio companies, typical deal sizes, and how to prepare for investment.

Key Takeaways

  • •Focus on Distribution, Technology companies
  • •Investment range: $15M-$100M in equity
  • •Based in United States
  • •Growth equity focus
  • •Active value creation approach

Notable Portfolio Companies

First Data (now part of Fiserv after acquisition) was a major payments and fintech company with significant private equity history. The company processed trillions of dollars in payments annually before its acquisition.

Firm Overview

First Data was a payment processing and financial technology company. In 2019, it was acquired by Fiserv for $22 billion. The firm had significant private equity investments in the payments and fintech space.

What First Data Looked For

First Data typically evaluated companies based on clear investment criteria:

  • Strategic fit: Complementarity with payment processing business
  • Technology differentiation: Innovative payment technology solutions
  • Market opportunity: Large addressable markets with growth potential
  • Growth potential: Strong growth trajectory and expansion plans
  • Management team: Experienced payments management with industry expertise

Pro Tip

First Data looked for companies that could benefit from their distribution network and payment infrastructure. Strategic value beyond capital was often a key differentiator.

Financial Preparedness for Fintech PE

Fintech and payments companies need sophisticated financial infrastructure to meet investor standards:

How Eagle Rock Helps

We help fintech and payments companies prepare for investment by building financial infrastructure that showcases operational excellence and growth potential.

Pro Tip

Prepare detailed financial projections and operational metrics before initial meetings.

Frequently Asked Questions

What industries does First Data focus on?

First Data primarily invests in Distribution, Technology. The firm seeks companies with strong market positions and clear growth trajectories.

What size companies does First Data acquire?

First Data typically invests $15M-$100M in equity, targeting companies with enterprise values in the lower to middle market range.

What is First Data's typical investment size?

The firm's equity investments generally range from $15M-$100M, positioning them as active investors who can provide meaningful capital for growth.

How long does First Data's due diligence process take?

Due diligence timelines vary by deal complexity, but First Data typically conducts thorough financial, operational, and market due diligence over several weeks to months.

What should I prepare before engaging with First Data?

Prepare three years of audited financials, detailed market analysis, management team bios, growth plans, and a clear vision for how the partnership would create value.

How does First Data work with portfolio companies?

First Data takes a partnership approach, working closely with management teams on strategic initiatives, acquisitions, and operational improvements.

Ready to Connect With First Data?

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This article is part of our Private equity firms | Eagle Rock CFO guide.