Targeting Potential to Realize Opportunity
When we measure a company’s credibility, we employ stringent criteria. A company should have innovative products or services, growing market positions and strong management teams in place or identified. It should be capable of building shareholder value through market strength in product line, technology, distribution, manufacturing or brand and have a clear business strategy with multiple avenues for growth and market share gains. Fundamental and compelling industry growth drivers should be in place and the company should have exit potential through a financial or strategic sale, or IPO.
We target a company where a unique angle exists to secure the acquisition or to create value thereafter. Previously, this has arisen from transactions offered to us on a proprietary basis. Such as, where an opportunity existed to install a new expert management team, a special situation or industry knowledge led to identification of an opportunity, or where we leveraged our extensive network of business relationships to the advantage of the target company, especially within the Middle East.
Upon completing an acquisition and once the target company becomes part of the private equity portfolio, our executives work closely with each portfolio company’s management team. They do so to establish a clearly defined business plan for creating equity value, while designing a tailored capital structure and management equity incentives to promote growth and profitability. We aim to nurture and grow the investments through the holding period with strategic and financial support when necessary. To date our core management has overseen over 30 investments with a total transaction value of approximately $15 billion.