What is your due diligence process?
Our process is streamlined and efficient, with a goal of minimizing management distraction. We look to provide sellers with early feedback within two weeks after receiving financial information on the business.
How do you value companies and what’s the secondary discount?
We don’t price based on discounts and an investor’s carrying value is an irrelevant metric for purposes of our valuation. We complete a bottoms up analysis on the business and try to deliver pricing that is both fair and attractive to the selling shareholders.
What protective rights are you looking for?
We are comfortable valuing and purchasing existing securities including preferred and common stock, subject to alignment of shareholder interests and risk. In most cases, we are seeking standard institutional investor minority rights and are typically assuming the rights and privileges of the selling shareholders.
What is your approach to primary capital?
We are supportive of providing primary capital concurrent with or subsequent to a secondary transaction.
How will you work with the ongoing investors after the deal?
We go into deals underwriting to the timeframe and operating plan of the ongoing investors and management. We are board participants in the majority of our investments but it is not a requirement and depends upon ownership and stage of the company.
How would we take next steps?
We spend most of our time talking confidentially with Companies and GPs about their liquidity objectives and specific situations. We would welcome a confidential discussion under NDA. We can also share with you more about our approach and transaction history.