Private equity is increasingly the preferred vehicle for financing investments. Expadis offers services to private equity funds to facilitate initial investment, strategy and advice on the range of exit options. We have advised sponsoring funds on leveraged buyouts, venture capital transactions and growth capital investments. In addition to offering strategic investment advice, Expadis has provided expertise in gathering market intelligence, research and analysis of firms, sectors and markets. We can advise you on how to maximise value so as to achieve the most favourable disposal strategy and price. We can assist with spelling out the best exit option whether it is an initial public offering, a merger or acquisition or a recapitalisation to provide the most efficient exit strategy.
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Our investment process begins with establishing your portfolio objectives, where we also seek the appropriate structure so the fund manager receives the proper incentives to align their interests with yours.
Working with both general partners (GPs) and limited partners (LPs) we design the optimal fund structure. We help you analyse the macroeconomic environment and determine your optimum asset allocation and cash flows. These are selected in light of the capital you choose to commit and the risk you wish to tolerate. Finally, we stress test the design before capital is actually committed.
Expadis’ greatest contribution is helping you in identifying and analysing investment opportunities before performing extensive due diligence.
Cash is a liability. As one of the KPIs for Private Equity, managing liquidity requires accurate projection of capital drawdowns and distribution cash flows. We help LPs achieve optimal levels of over-commitments by identifying sources of liquidity and managing undrawn capital.
Alpha generation is the key to private equity funds and selecting fund managers that perform in the top quartile is more important in private equity than in public equity.
Expadis believes monitoring has a range of benefits: it enhances investment skill and leads to better private equity investment results. Monitoring improves investors’ ability to screen new investment opportunities. Close contacts with GPs facilitates faster due diligence and LPs can better manage liquidity and commitments with access to high quality information from monitoring.
We co-invest and assist with secondary transactions as well as the restructuring of funds.
As part of a deeper risk analysis, we help you assess operational factors such as revenue growth, margin changes, cash flow creation and costs, as well as balance sheet factors such as debt repayment schedules, debt maturities and the ability to adjust covenants and working capital constraints. We take into account market factors such as likely purchasers, time until exit, expected sale price and access to IPO markets.
Investments in private equity funds represent partial ownership of potentially hundreds of portfolio companies. During stressful macroeconomic periods, correlation shifts in portfolio companies may shift in unexpected ways. We help GPs and LPs assess the risk and impact of such factors
Capital commitments are called over time and this creates off-balance-sheet liabilities for LPs. We help you assess potential opportunities for unfunded commitments.
In conducting manager due diligence, we help you consider the performance of prior funds operated by the GP, economic and legal structure of the fund, incentive structure for the GP, desirability of the current fund strategy and status of the current portfolio companies.
At the programme level, we help investors map broad risk factors, conduct scenario analysis and conduct active risk management through a factor-based approach. We use a myriad of creative arrangements such as through identifying risk concentration and fine-tuning limited partnership agreements to help you evaluate new commitments, asset allocation changes and co-investments.
