• PRIVATE EQUITY / DIRECT INVESTMENT
• PORTFOLIO MANAGEMENT

Methodology

Zabeel Capital will adopt best practices strategies in relation to private equity deals which aim at enhancing returns and respond to high valuations, growing competition and mounting pressure from limited partners such as:

Partnering:

By developing relationships sometimes, formal partnerships with established companies, we obtain guidance about where to put money to work. In addition to improving success rates, partnering can provide a clear path to an exit strategy in the form of an acquisition by a strategic investor—typically producing a more favourable result (full liquidity and a potential control premium) than an IPO. For the established company, entering into these partnerships also makes sense.

The strategy is similar to an approach venture capitalists have successfully employed for years—seeking the input of leading technology companies on where the market is headed, then using that information to adjust their investment strategies on both the front and back ends of their deals.

Operational Value:

In addition to partnering, we will be looking to operational-oriented strategies as a way to enhance returns from our portfolios. While performance improvement has been a standard practice when it comes to troubled assets, it is becoming more and more common with investments in relatively healthy companies. The ability to tap into operational expertise is vitally important and often overlooked. To assess whether operational value can be derived from a company, investors must be able to understand the heart of the organization.

If opportunities for enhancing operational value exist, they must be identified through an informed process and, ultimately, executed through a hands-on approach.

Producing Returns:

While private equity firms have prospered in recent years, new challenges have made it more and more difficult to continue producing impressive returns on an ongoing basis.

As questions surface as to how long the streak will last in the face of rising multiples, leverage and interest rates, Zabeel Capital will embrace these forward-looking strategies will therefore be far better positioned to continue to produce gains, even in the event of a market shift.