SCM's overall goal is to enhance returns on distributed private equity investments. SCM creates distribution management programs precisely tailored to client objectives and risk tolerances.

Our investment team begins its research and evaluation process on each potential client position at least six months in advance of the distribution event. Because securities distributed out of private equity funds present a unique set of characteristics that impact stock valuation, our fundamental analysis also focuses on additional factors such as the reputation of the general partner, past performance of the distributing broker, lock-up release dates, stock overhang, and the size of the distribution relative to the average daily trading volume.

The History of Shott Capital Management

Prior to founding SCM, George Shott had a 14-year career at GT Management PLC, where he managed private and publicly traded U.S. small cap technology stocks. In addition, he was responsible for the initiation and management of the GT Science and Technology Funds. George was also Chairman of GT Venture Management, Inc. and Managing Director of Thompson Clive, Inc., a British venture capital firm.

While at GT, George worked out of an office in Menlo Park where he maintained close ties to the west coast Venture Capital community and early denizens of Sand Hill Road, home to the world’s most preeminent VC’s such as Kleiner Perkins, Caufield & Byers, New Enterprise Associates, and Matrix Partners, to name just a few. During the 1980’s, early supporters of these entrepreneurial VCs subsequently started to receive in-kind stock distributions from their nascent funds. The stock was for small start up companies such as Microsoft, Cisco, Genentech, and Sun. A few prominent investors asked George to help him manage these securities. As a result, George started managing post venture capital assets in 1987 and ultimately founded Shott Capital Management in 1991.

Competitive Advantages

Why a Distribution Manager?