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Value Creation

After making an investment, the fund acts as an active and involved investor, and the investment team has experience in leveraging control positions to enhance portfolio company value. The investment team keeps in close contact with the company following closing in order to promote a smooth transition for the management and ensure that a strong framework is in place for executing the strategic, operational and financial plans for the company. The investment team also maintains contact with the portfolio companies over time through one or more supervisory board positions, investor meetings, and delegated management functions. It supports a company-wide promotion of best practice private equity standards, and world class operating and management techniques at each portfolio company.

The fund maintains a disciplined monitoring process through the life of an investment, with detailed company-wide reviews of portfolio company progress on a semi annual basis. Specific portfolio company issues are also raised on a weekly basis during investment team meetings. In addition, the managing directors seek to visit each portfolio company very regularly to enhance transparency and facilitate incremental sharing of expertise. The investment team will be closely involved with the creation of growth strategies, and will have a hands-on approach in steering the related time lines and implementation programs.

Unlike the management of many other private equity funds, the investment team has significant operational management experience, in addition to investor- and private equity experience. The experience of the investment team includes, but is not limited to:

  • Developing, analyzing and profitably implementing detailed business plans;
  • Building and managing management teams;
  • Human resource management and recruitment;
  • Strategic planning and management;
  • Establishing and building operating companies, including all operational management (in 4 continents, with up to 3,000 employees);
  • Sourcing, transport, storage and processing of raw materials globally;
  • Production and processing in small and large industrial facilities;
  • Project management and building of industrial facilities;
  • Transport, storage, quality control, marketing and distribution of finished goods globally;
  • Auditing and reporting;
  • Building and managing legal strategies (corporate, M&A, and capital-related);
  • Financial management, including price risk management, foreign exchange management, insurance and extensive private equity reporting;
  • Raising and managing debt and equity capital for operating companies from local and international financial institutions;
  • Assessing risk and structuring debt transactions that mitigate these risks on behalf of lending institutions;
  • Tax planning;
  • International cooperation and partnerships;
  • Cooperation with governments and public institutions, and analysis and influencing of regulations.

Based on this hands-on operational experience in a full range of management fields, the investment team is in a position to advise and support management of portfolio companies not only with their strategic challenges, but also with their more day-to-day operational issues. On a more strategic level, the investment team expects to add value in the following areas:

Creating and implementing strategic plans
The investment team has significant experience in helping companies develop and execute strategic plans to grow company revenues and profitability. These include business portfolio optimization plans and industry consolidation strategies.

Supplementing and building management teams
Where appropriate, the investment team actively ensures that a portfolio company management team is effective and has the right skills to support business growth.

Improving organizational efficiency
The investment team has significant experience in rationalizing costs and optimizing the organizational structure of and working capital management at portfolio companies and implementing financial controls to improve management of business units.

Introducing innovation
The investment team understands how innovation through adding new business activities or improving existing business activities can create value. With its international experience, network and perspective the investment team is in a position to push for innovation in an ambitious but realistic manner.

International expansion
Local businesses have a tendency to focus primarily on their existing market. The investment team naturally looks at the international (also Asia and Brazil) and regional environment for growth- and cooperation opportunities. Its international network will allow it to assist portfolio companies with sensible expansion plans abroad, and with connecting with foreign partners that can add value through various forms of cooperation, including outsourcing and market development.