Creating Value Through Transformation€¦ · Disciplined Investment Strategy: Creating Value Through Transformation. Deep Expertise Across Three Core Industries 7 S e c t o r 1 S

Creating Value Through Transformation

2 0 X X

2

growthintegrity

transformational

agile

operationalproactivecontrarian

creativepat

ien

t

thes

is-d

rive

n

tran

spar

en

t

pru

de

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experienced results driven

value-orientation

forw

ard

loo

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trustedhonesty

XYZ

B U S I N E S S B U I L D E R S F O R X X Y E A R S

3

Control, Middle Market Investors | Strategically-Focused, Active Owners

C R E AT I N G V A L U E T H R O U G H T R A N S F O R M AT I O N

XYZ

XYZ by the Numbers

4

C O N S I S T E N T R E T U R N S A C R O S S T H R E E M A R K E T C Y C L E S

R E S U LT SI N V E S T M E N T S

XX institutional

funds

$XXinvested

XX +add-on

acquisitions

XX platform acquisitions

$XX in realizations

XX x Gross MOIC

(XX x Net MOIC)

XX % Gross IRR(XX % Net IRR )

INVESTMENT PARTNERS

• Highly-seasoned, home-grown team

- 100% promoted internally

• Average tenure at XYZ of XX years

• Each partner responsible for a specific industry vertical

• Successful GP ownership transition completed in XXXX

- Firm managed by a XX-person Executive Committee

XXX

5

O N E S T R AT E G Y | O N E T E A M | O N E O F F I C E

XYZ Senior Team: Well-Positioned for the Future

OPERATING PARTNERS

• Hands-on business builders

• Former CEOs and CFOs

• Full-time members of the firm and participants in the carry pool

• XX investment professionals

• XX firm employees

• XX% GP commitment in Fund XX• Proactive sourcing of new platform

investments and add-on acquisitions

BUSINESSDEVELOPMENT

• XX financing transactions since XXXX

- $XXB placed directly by XYZ

CAPITALMARKETS

$ $ $

XXX XXX XXXXXXXXX XXX XXX XXX

6

• Strengthen management talent

• Execute add-on acquisitions

• Drive organic growth

• Implement synergies and cost savings

• World-class management teams

• Market-leading companies with differentiated capabilities

• Strategic position drives valuation at exit

• Deep expertise within core industries

• Thesis-driven approach

• Disciplined value orientation

• Capital structure optimization

INVESTMENT TRANSFORMATIONAL GROWTH SIGNIFICANTLY IMPROVED BUSINESS

Disciplined Investment Strategy: Creating Value Through Transformation

Deep Expertise Across Three Core Industries

7

S e c t o r 2 S e c t o r 3S e c t o r 1

Macro Themes

Favorable Long-Term Trends → Strong Demand Growth with Limited Cyclicality

Meaningful Segments of the Economy → Broad, Diverse Opportunity Sets

Fragmented Industries → Opportunity to Consolidate + Add Value

Low Capital Intensity → Cash Flow Generation

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Rigorous Approach to Deal Generation

8

INVESTMENT PARTNERS

BUSINESS DEVELOPMENT

OPERATING PARTNERS

• Deep industry expertise

• Extensive primary research drives highly specific investment themes; never following the crowd

• Form partnerships with senior executives to pursue build-ups

• Systematic approach to managing complex network of intermediary relationships

- Over XX advisors, investment bankers, attorneys and accountants across XX

- Over XX in-bound deal introductions annually

• Attend M&A conferences with key industry relationships

• Target acquisitions aligned with investment themes

• Fully-integrated team works closely with investment partners as part of the diligence process

• Over XX years of combined experience, having served as CEOs and CFOs at large, multi-national corporations

STRESSED BALANCE SHEET

Identifying Businesses Facing Distinct Challenges

9

C H A L L E N G E S U N D E R TA K E N

STRATEGIC COMBINATIONS

CORPORATECARVE-OUTS

BUILD-UPS

LEADERSHIPTRANSITION

OPERATIONALUNDER-

PERFORMANCE

$XX EBITDA

$ XX equity investment

XX deals per fund

T A R G E T C O M P A N Y 1

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Companies

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Companies

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Companies

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Companies

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Companies

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Companies

FUND A FUND B FUND C FUND D INDUSTRYAVERAGE

Investment Strategy Drives Attractive Purchase Prices

10

T H E B E N E F I T O F O U R V A L U E O R I E N TA T I O N

Downside protectionacross cycles

Opportunity for multiple expansion as a result of transformational growth

E N T E R P R I S E V A L U E / E B I T D A M U LT I P L E S

In-house Capital Markets Execution

11

• Proprietary financing documents with terms uncommon in the middle market

• Provides maximum operational flexibility; eliminating lenders from Boardroom discussions

• XYZ structures diverse lending groups, adding new lenders in every deal

• Increases the ‘pool’ of lenders to fund growth

• Diminishes leadership of any single lender

• Privately place over XX% of debt transactions in-house

• $XX of debt capital raised across XXtransactions

• Below market financing costs

FLEXIBILITY & SAFETY

DIVERSIFICATION

LOW COST

O U T C O M ES T R A T E G Y

T R A N S F O R M I N G D E B T F R O M A L I A B I L I T Y T O A N A S S E T

Bespoke Process

Focus on Detail

Relationships, Not Dependencies

Repeatable Model

Continuous Improvement

Active Liability Management

C O R E T E N E T S

Proactive Approach to Talent Management

12

• Implement organizational design consistent with portfolio company’s goals

• Design equity incentive structures (short and long-term) to align closely with our LPs

• Assess leadership talent through a data-driven approach

• Proactively identify talent gaps and recruit best-in-class executives

• Expand management skills / experience to match lifecycle of an investment

• Execute succession planning

C O N N E C T I N G T A L E N T T O

V A L U E

Percentage of Executives Upgraded During XYZ Ownership1

CEO CFOExecutive

Team

Executing XYZ’s Operational Excellence Playbook

13

DRIVE ORGANIC GROWTH

• Commercial best practices

• Strategic pricing

• Cross-sell opportunities

• New sales channels, geographies

• Additional services

EXECUTE & INTEGRATE ACQUISITIONS

• Governance and reporting framework to realize cost synergies

• Employee messaging and retention

• Eliminate any disruption to the core business

• Revenue synergies

IMPLEMENT COST SAVINGS

• Incorporate SG&A efficiencies

• Institute functional best practices

• Enhance employee productivity

• Simplify organizational structure across the company

1ST LINE OF DEFENSE

2nd LINE OF DEFENSE

Defending Our Companies

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3rd LINE OF DEFENSE

T H O U G H T F U L A N D A C T I V E R O L E T O P R O T E C T I N G O U R C O M P A N I E S D U R I N G T O U G H T I M E S

XYZ Companies

Firm Evolution

17

3 0 - Y E A R H I S T O R Y . . . E N H A N C E D O V E R T H E L A S T T H R E E F U N D S

20XX

30-YEAR HISTORY • Xxx

FUNCTIONAL EXPERTISE

• Xxx

INVESTMENT EXPERTISE

• Xxx

I N V E S T M E N T A P P R O A C H

DISCIPLINED INVESTMENT STRATEGY

LESSONS LEARNED

OPERATING PARTNERS

CAPITAL MARKETS

BUSINESS DEVELOP

DEPTH OF SECTOR KNOWLEDGE

LEVEL OF TRANSFORMATION

STRATEGIC SOURCING

TODAY

BRAND RECOGNITION

16

Fund Performance Across Investment CyclesAs of December XX, 20XX

16

FUNDS A-D(20XX-20XX)

FUND E(20XX)

FUND F(20XX)

FUND G(20XX)

FUND SIZE

Fund A (20XX): $XXFund B (20XX): $XXFund C (20XX): $XXFund D (20XX): $XX

$XX $XX $XX

TOTAL VALUE $XX $XX $XX $XX

MULTIPLE (MOIC)

Gross XX XX XX XX

Net XX XX XX XX

RETURNS(IRR)

Gross XX XX XX XX

Net XX XX XX XX

DISTRIBUTIONS(DPI)

Gross XX XX XX XX

Net XX XX XX XX

• XX Gross MOIC, XX Net MOIC

• XX Gross IRR, XX Net IRR

• Fully Committed, XX of Total Value returned to LPs

• XX Gross MOIC, XX Net MOIC

• XX Gross IRR, XX Net IRR

• Fully Committed, XX of Total Value returned to LPs

17

Fund F (20XX)Fund E (20XX)

Fund V and Fund VI PerformanceAs of December XX, 20XX

Invested Capital Total Value

Realized Proceeds Unrealized Value

Invested Capital Total Value

Recent Investment ActivityAll Fund G investments to date ($M)

18

InvestmentDate

EquityInvested

Equity Committed

PurchaseMultiple

Company Overview

20XX XX XX XX

20XX XX XX XX

20XX XX XX XX

20XX XX XX XX

20XX XX XX XX

20XX XX XX XX

20XX XX XX XX

TOTAL XX XX XX

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Insert Company Logo

Insert Company Logo

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Insert Company Logo

Insert Company Logo

Insert Company Logo

19

EquityInvested

Company OverviewDistribution

DateDistribution

AmountDistribution Type

XX 20XX XX

XX 20XX XX

XX 20XX XX

XX 20XX XX

XX 20XX XX

XX 20XX XX

TOTAL XX XX

Recent Distribution ActivityNotable distributions across the portfolio since 20XX

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Beyond Fund Investments: Partnering with LPs

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F O R T H R I G H T, T R A N S P A R E N T C O M M U N I C A T I O N S

A L I G N E DI N C E N T I V E S

XX GP Commitment

(Fund G)

C O - I N V E S T M E N TE Q U I T Y

~$XXin Co-investment

Opportunities AcrossFunds E - F

D I R E C T D E B TI N V E S T M E N T S

$XXof Debt Placed Directly by XYZ

APPENDIX

Organizational Chart

22

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XXX XXXXXX XXX XXX XXXXXX


XXX

XXX

XXX


XXX XXX

XXX

XXX XXX

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XXX

XXX XXX XXX

XXX

XXX

XXX

XXX

XXX

XXXXXX

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XYZ

Stable Investment Team Leadership

Sen

ior

Inve

stm

en

t Te

am

Tenure (years)

<<Insert Company Name>> E

<<Insert Company Name>> F

13

12

14

30

23

8

6

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18

XXX<Insert Designation>


XX G

Te n u r e d S e n i o r Te a m w i t h C o n s i s t e n t D e a l A t t r i b u t i o n

Fun

ctio

nal

Ex

pe

rtis

e

Fund Term

24






Track Record: Fund F and G

24

As of December 31, 20XX, unless otherwise noted

Vintage: 20xx

Fund F PortfolioInitial

InvestmentCapital Invested

(Net of Recycling)Distributions

to Date Distributed to Paid-InBook Value

Total Value

Gross MOIC

Gross IRR

XX XX XX XX XX XX XX XX XX








Fund F Total XX XX XX XX XX XX XX

Net MOIC XX

Net IRR XX

Net DPI XX

Vintage: 20xx

Fund G PortfolioInitial

InvestmentCapital

Invested Capital CommittedDistributions

to DateDistributedto Paid-In

Book Value

Total Value

Gross MOIC

Gross IRR

XX XX XX XX XX XX XX XX XX XX





Fund G Total XX XX XX XX XX XX XX XX XX

XX XX XX XX

XX XX XX XX

Fund G Total To Date XX XX

Net MOIC XX

Net IRR XX

Net DPI XX

Track Record: Fund E

25

Vintage: 20xx

Fund E Portfolio Initial InvestmentCapital Invested

(Net of Recycling)Distributions

to DateDistributedto Paid-In

Book Value

Total Value

Gross MOIC

Gross IRR













Fund E Total XX XX XX XX XX XX XX

Net MOIC XX

Net IRR XX

Net DPI XX

As of December 31, 20XX, unless otherwise noted

Documents

Creating Value Through Transformation€¦ · Disciplined Investment Strategy: Creating Value Through Transformation. Deep Expertise Across Three Core Industries 7 S e c t o r 1 S