We have three overriding objectives when investing in a company:
Our initial investments occur through secondary purchases – when some shareholders seek an “early” exit. These so-called direct secondaries – in short “Directs” – transactions have taken off since early 2000 as exit markets remained closed for all but the finest portfolio companies. Today, Directs are commonplace as investors seek to proactively manage their holdings and reallocate resources, in part also forced by decreasing funds and tax and regulatory regime changes. The downside of these early departures for the portfolio companies, in terms of business, financial and reputational damage, if left unmanaged, can be significant.
Our funds are among the preeminent investors in Directs transactions worldwide. By providing a customized, timely and confidential solution to replacing a selling shareholder, we bring liquidity to an illiquid market and fill a key place in the value-chain.
For portfolio companies, our investment has multiple benefits:
Our reputation is all about being straightforward and trustworthy, and our track record and references prove it.
The companies we invest in typically have the following attributes:
Our typical investment is:
Once invested, we expressly support primary fundings as well as recapitalizations as the business matures. We may further serve as a buyer, over time, of shares from founders, angels and others as these early investors may seek liquidity in the absence of a final exit.
Directs have become commonplace but, despite their obvious benefits, many deals still suffer from failure, causing management distraction and oftentimes loss of company-privileged information. Portfolio companies can avoid this by coordinating seller efforts and scrutinizing prospective buyers for their transactional know-how and likely contribution post-investment.
We engage management teams in potential transactions early on to ensure the least disruptive due diligence effort. We are experts at doing Directs worldwide and have often helped companies and sellers alike achieve better, more favorable deals – well beyond a seller’s goal of a timely exit and a portfolio company’s desire for replacement capital.
Our multinational team speaks, quite literally, the language of our portfolio companies and can execute a due diligence program that yields timely decisions and firm commitments in the shortest possible time-frame.
Post-investment, aside from ample capital, we are uniquely experienced in working with management to attract further talent, set incentive programs or plan and execute corporate development initiatives. We also often serve as senior advisor when it is time to prepare or execute financing or M&A transactions, an area of expertise that is much sought after by most management teams and boards.
In doing all this, as a matter of principle, we always partner with management and work with – not against – our fellow stakeholders.