Ancestry is the leading provider of online family history information with more than 1.7 million paying subscribers and more than 7 billion searchable records and a public company (NASDAQ: ACOM).  Spectrum made an initial minority investment in 2003 that provided liquidity to early shareholders, and then we partnered with management in 2007 to purchase a majority interest, assembling an 11 member lender syndicate to finance the majority deal.  We have supported a number of operational improvements including refining pricing and packaging, enhancing the core product, and expanding customer acquisition channels.  In addition, we have recruited a CEO, CFO, SVP Product, VP Corporate Development, and four outside board directors to the company and worked with management to complete three strategic acquisitions in 2010.  Finally, we have been active partners in helping the company access the capital markets, assisting management through a $100 million IPO in November 2009, a $100 million secondary offering November 2010, and another $183 million secondary offering May 2011.

Demand is a leading platform for the creation and monetization of online content through proprietary publishing and compensation systems.  Spectrum was the lead sponsor in the formation of Demand Media in 2006 - we developed the concept for an acquisition platform in online content and undertook a 12 month process to bring together the management and identify and close the initial acquisitions.  We recruited Richard Rosenblatt as CEO and Charles Hilliard as President & CFO and have assisted in multiple acquisitions from the company's founding in 2006 to 2011 including enom, eHow, Pluck.com, ExpertVillage.com, RSS Graffiti, and IndieClick.  During this time, Demand also launched LiveSTRONG.com with Lance Armstrong, a site which added 1.5 million users in its first year of existence.  We have been active partners in helping the company access the capital markets, working with management to raise $200 MM of additional private equity capital to finance acquisitions and assisting management in preparing for and completing a $150 million IPO January 2011.

iPay was the leading independent vendor of online bill payment software and services to community banks and credit unions, with over 3,600 financial institution customers.  Spectrum purchased a majority interest in the company in 2006, an investment that provided full liquidity to outside shareholders and partial liquidity to founders/management.  We assisted management in a number of initiatives - recruiting a President/CFO, CIO, SVP Product Management, and SVP Marketing; supporting the launch of a new bill pay remittance business which led to dramatic expansion in iPay's customer base; and finally assisting management in negotiating key strategic partnerships which resulted in a substantial increase in the company's partner base.  iPay was sold to Jack Henry & Associates for $300 million in June 2010 with very active involvement by Spectrum in the sale process including selecting an advisor and assisting in negotiations with the buyer.

Mortgagebot is the leading vendor of an offering that enables community banks and credit unions to market and process mortgage applications online. The company is the clear leader in its space with over 900 customers, more than all other competitors combined.  Spectrum initiated a 2½ year dialogue with management in 2003 which ultimately led to our purchasing a majority interest in the company in 2005. Our investment provided full liquidity to outside shareholders and partial liquidity to founders/management.  During our time as investors, we helped management to recruit a VP Marketing, VP Sales, and VP Business Development, and worked with management to triple the size of the sales & marketing team and develop new commission and incentive plans.  We also assisted in the acquisition of a competitor, Netupdate, which added 100 financial institution customers and enhanced Mortgagebot's leadership position, and we advised on product branding and new product launches including products for lending professionals and for use in branches and call centers to complement the core consumer self-serve origination product.  Spectrum assisted in refinancing the company's debt in 2006 and 2010, and we led the negotiations with Davis + Henderson in 2011, resulting in a sale of Mortgagebot for $232 million.

NetQuote is the largest online marketing company in the insurance vertical with over 5 million unique monthly visitors and a distribution network of over 19,000 agents and over 50 national carrier customers.  Spectrum purchased a majority interest from the company's founding shareholders in 2005.  We recruited a complete new management team and board including a CEO, CFO, CIO, CMO, VP Sales and two outside board directors, and we were actively involved in building out the company's finance department and internal systems.  Spectrum advised management on NetQuote's growth strategy, which included a significant expansion of the company's national carrier and local agent relationships, and we originated two strategic acquisitions and negotiated a refinancing of the company's senior debt.  NetQuote was sold to Bankrate for $205 million in July 2010, with active involvement by Spectrum in the sale process.

RiskMetrics is the leading global provider of risk management software and analytics to participants in the global financial markets, with a client base that included 2,300 financial institutions and 1,000 corporations across 50 countries at the time of our investment.  Spectrum initiated a 2 ½ year relationship with management before leading a majority investment in 2004, an investment that provided full liquidity to outside shareholders and partial liquidity to founders/management.  We recruited a new CFO and outside board director, and led the debt financing and negotiations of RiskMetrics' $530 million acquisition of ISS.  We also originated one other strategic acquisition and assisted management in the preparation and execution of a $245 million IPO in January 2008.  RiskMetrics was sold to MSCI for $1.55 billion in June 2010, with active partnership by Spectrum in the negotiation of transaction documents.

SurveyMonkey is the leading provider of online subscription-based survey solutions, enabling people to quickly and easily create Web-based surveys, collect responses, and analyze results.  The company has a very strong brand and strong viral growth model, and SurveyMonkey today attracts 20 million unique visitors per month from 240 countries.  Spectrum purchased a majority interest from company founders who were looking for a value-added financial partner to help recruit new management and grow and develop the business further.  We recruited a CEO as well as VPs in Operations, Finance, International, Methodology, Marketing, Product & Engineering and Corporate Development.  Spectrum led the negotiations for a refinancing of the company's senior debt eight months after our investment, resulting in interest savings, and led a $100 million debt refinancing in November 2010 which included the addition of an acquisition financing line.  We assisted management with three strategic acquisitions in 2010 and 2011, and supported management in many strategic initiatives and operating improvements including the internationalization of the company's product offering, pricing segmentation, conversion optimization, and development of a paid sales & marketing strategy.

World-Check is a leading provider of risk-related intelligence to over 4,700 financial institutions, corporate clients and government agencies. The company maintains a global database of potential high-risk individuals, and the database is sold as a subscription-based tool for clients to meet regulatory requirements and mitigate risk.  World-Check is the clear leader in its market, with triple the revenue of its closest competitor and larger than all other competitors in its market combined.  Spectrum purchased a majority interest in the company from its founders, who were seeking liquidity from a value-added partner who could help professionalize and grow the company.  Spectrum played a very active role in implementing a corporate and tax structure to what was a global company with little infrastructure, and during the period of our investment the company established a London headquarters and grew its employee count from 150 to 500.  We worked with the founders to recruit a CEO, COO, CTO, VP Marketing, General Counsel and a VP of Finance, and we played an active role in building the finance function and internal systems.  We also assisted in reorganizing the global sales team and designing a new sales force compensation model.  Our systematic coverage of the M&A landscape led to more than 20 separate discussions with acquisition targets, and Spectrum sourced and completed the acquisition of IntegraScreen.  World-Check was sold to Thomson Reuters in May 2011, with very active involvement by Spectrum in the sale process.