Large investment group with portfolio of hundreds diverse in size and industry assets in several countries.
What did the client want:
To support one of the shareholder’s main goals a strategy to increase the total consolidated group value needed to be found
After the analysis of the assets and the core competences the main conclusion (among others) was made about lack of focus on asset management. According to the hypothesis the group value could be significantly increased by changes in asset management. New suggested model enclosed an adjustments and updates in holding management as well a formation of a new private equity firm.
The worldwide management best practice of comparable private equity firms was synthesised and analysed. The capital market survey had clarified the requirements of the potential partners for the new firm and its funds. The current worldwide practice of the funds and average return rates by industries and countries were analysed as well, and the key success factors for the new funds and the firm were defined. Based on the processed information a new management model was designed.
Two main topics of the corporate strategy were the group reorganisation and the asset restructure in order to build three new funds.
The plan of group reorganisation and asset restructure was worked out as a part of the corporate strategy. One of the results of the plan was the creation of the new private equity firm with three funds. The designed models allowed to focus in asset management, to restructure the assets, and to raise an additional partner’s equity to enhance financial leverage and boost the assets return rate.