A key element of our growth-oriented strategy focuses on improving its portfolio companies’ operations to augment financial performance. Measures to optimize a portfolio company’s operating efficiency and maximize its growth potential involve both increasing the top-line, as well as reducing costs to improve margins. Our “operations toolkit” broadly includes: (i) augmenting core business revenues; (ii) creating new revenue streams; (iii) reducing costs; and (iv) improving financial structures (including lowering costs of financing).
In practice, ascertaining improvements that can be made involves an assessment of both company-specific issues as well as the market in which the company operates. These operational improvement measures are typically identified pre-investment, as part of the investment thesis and the due diligence process. As such, our in-house operations team is involved from the onset of the process and works closely with the investment team to identify value in a potential investment opportunity.