Tom Matthews
How combining forces unlocks transformational growth in private companies
In investing, as in life, success is rarely the result of one factor alone. It often comes from the convergence of several forces—each amplifying the impact of the others. Charlie Munger famously called this the Lollapalooza Effect—when multiple mental models combine to produce an outsized result. At Pemba Capital, we see this phenomenon play out regularly in the world of growth investing in private companies.
Growth investing: more than just capital
At its core, growth investing is about backing ambition. But it’s not just about providing capital—it’s about aligning vision, capability, and timing. We look for founder-led businesses with proven models, strong cultures, and a desire to scale. Then we add fuel to their fire: strategic insight, operational expertise, capital to fund growth, and access to our Accelerate team, including Pemba’s Value Addition Partners. That’s when the magic happens.
The Pemba approach to creating a Lollapalooza Effect
We don’t believe in passive investing. Instead, we take a deeply engaged approach to value creation. Here’s how we orchestrate a Lollapalooza Effect in our partnerships:
1. People + Purpose
We back exceptional founders and leadership teams who are already doing something right. Our role is to help them scale what works, sharpen what doesn’t, and surround them with the right people—from executive hires to strategic board members.
2. Capital + Capability
Growth capital is a tool, not a strategy. We pair our investment with operational know-how and strategic support tailored to the company’s growth phase—whether it’s geographic expansion, digital transformation, or M&A execution.
3. Data + Discipline
Gut feel gets you started, but data sustains momentum. We bring rigorous analysis to every decision, helping companies build dashboards, track KPIs, and make more confident choices on “where to play” and “how to win”.
4. Vision + Velocity
We’re long-term investors, but we move fast. We work with founders to crystallise a bold vision, then implement a clear value creation plan to accelerate growth without sacrificing control or culture.
Case studies in compounding momentum
We’ve seen the Lollapalooza Effect in action across a range of sectors—from healthcare and education to business services and software. In each case, it wasn’t just market opportunity or just operational excellence—it was the collision of multiple reinforcing factors that created exceptional outcomes.
These are not overnight successes. They’re the result of deliberate partnership, shared ambition, and the compounding impact of doing many small things right—together.
Why this matters now
In today’s market, where volatility is the norm and scaling is harder than ever, private growth investors must do more than write cheques. They need to help build enduring businesses.
At Pemba, we don’t wait for the stars to align. We help align them.
That’s the Lollapalooza Effect.
Scaling summits. Together.
If you’re a founder looking to scale, or an advisor working with ambitious private businesses, we’d love to hear from you. Growth is a team sport—and the right partner can make all the difference.
