These are interesting times for Private Equity (PE) Houses
or investors. Fundraising has become a matter of demonstrable
management skills and added value with returns. Investors are
reviewing their private equity allocations and competition for
quality, secure deals is intense. Even with the recent gradual
increase in merger and acquisition (M&A) activity, the scope
for the PE House to fund aggressively is diminishing due to
the flood of investment opportunities and expectations from
their investors. Quality not quantity is the new hard approach
taken.
In today's market a new focus on building value and managing
performance from existing established companies emerges. PE
Houses are likely to need a wider range of skills at their disposal
than is necessary purely to understand deals. Therefore, the
services of AVG clients traditionally expect from us have broadened
beyond the deal and taken on a longer-term context. AVG is now
taking one of the leading positions in offering a combined approach
to helping clients with their strategic placing, deal structure
and AVG's third party financial independent support for companies
seeking funding.
AVG supplies a broad range of skills, comprising some of the
best and most experienced PE advisers, corporate finance, transaction
and commercial due diligence including tax. AVG has the skills
PE Houses look for to help support them in their decisions for
funding your company.
CAPITAL PROTECTION
The purpose
The purpose of capital protection is to protect the PE Houses
(investor's) position against loss in the event of your company
failure, PE Houses or investor's investment in your company.
It's all about protecting the investors downside risk ensuring
losses can be recovered.
Capital protection can be used for many types of companies seeking
investment.
Another way the guarantee can be used is to ensure a return
of profit.
The Capital guarantee can be tailored to suit varying company
requirements. A capital guarantee will dramatically increase
your company's visibility within the investment community, which
in turn will be reflected in the way investors value your stock,
through the fund raising and investment life cycles.
Fundraising
In today's market, money takes longer to raise and failure is
always a concern. There is less willingness to invest in initial
fundraising.
In this environment, PE Houses, investors will take into account
a range of factors in evaluating the opportunity:
- The track record;
- The credibility of the team;
- How safe is the investment;
- Industry experience and ability to add value;
- The way tax structures match their individual complex needs;
- The clarity and substance of the key messages presented;
AVG exploits interviews, with industry comparisons and performance
data to help pinpoint the key issues for PE Houses. Our advice
can be supported by factual comparisons with competitors showing
your increased strengths by the Capital Guarantee. Our
key strength is in helping build and implement plans of action
that can actually make a difference; we put our own money on
the line with our Capital Guarantee for investors and your company.
Increasingly we see the demand for more transparent presentation
of investment performance. Looking to contract with a range
of participants, starting with existing investors for follow-on
funds, PE houses can draw investors from the investment community.
Capital returned in a timely manner and tax considerations will
be of paramount importance to these PE Houses and you need advisers
with the reach and knowledge to give you some of the most appealing
structures. In these pressured times we can help your company
achieve funding goals by using AVG's ability for support to
the PE House for the Capital Guarantee and safer structured
returns.
The advantages of partnering with AVG
May allow your company once approved to raise funds from institutions
such as Pension Funds or PE houses that may be able to invest
in your company because of the Capital Guarantee, which normally
as a IPO, private company or non listed company would not be
allowed under the operating guidelines for institutions.
AVG
- Provides investor confidence in violate markets or in perceived
higher risk sectors.
- Provides wider market for your company for investors that
are risk adverse.
- It removes the downside risk for the investor while still
allowing the investor to participate fully in any upside gain.
- Provides the company or the PE House with future cash injection
or special dividend as the capital Guarantee matures.
Investment and deals
Clarity of strategic industry focus and targeted deal size are
key to building relationships in the investment community. How
effectively clients present to the market, and the strength of
their contacts will drive their deal. To help deliver this AVG
provides a team that suits the PE house needs based on individuals
with the appropriate deal experience.
AVG understands business funding
In a climate where the pressure to achieve good returns is high,
due diligence and third party support can be a vital tool for
achieving a successful funding and AVG can support this again
with a guarantee to close the deal.
Making the most of PE House interviews
Where the relationship between the PE House and the company
is paramount (as they have the money to invest whole or in part)
AVG can supply professionals on your companies behalf dealing
one on one with the PE Houses or investor groups in order to
enhance your professionalism, efficiency and effectiveness for
the fundraising of your company.
With AVG there needs to be an approach developed which focuses
on what matters for the PE Houses and investors to make their
choice in investing in your company instead of others.
Only serious players are taken seriously.
AVG is a one of a kind specialist. As stated AVG places its
own money on the line to guarantee your investor/s once you
are accepted and funds are raised.
To this end with the initial applications we receive a retainer
whilst reviewing you needs including meeting you and your team
and understanding your business goals and funding requirements.
We have to have faith in you your team and your business. This
takes serious time and effort on our side. We also will explain
how we will structure the investor capital guarantee and value
ads for your company.
AVG always have our team including legal and independent professional
sector experts provide input as per our approval process. This
can take as little as 15 to 20 days on most level one applications
to become an approved AVG investor capital guaranteed company.
(Note we only proceed with one project at a time so we pay
full attention to our business and yours of making the right
decisions. This may however cause a timing issue that we both
may have to plan ahead and deal with.)