Private Equity Firm

Issue Faced. International Private Equity firm had invested DM 150 million over 18 months and when hired the value of the portfolio companies was valued at DM 50 million. Existing management was fired and new management (Bain Consulting) brought in. The complication was that the new management could not invest any additional funds in any of the portfolio companies.

Industry. Portfolio companies consisted of manufacturing, service and real estate.

Location. Germany (portfolio companies) and Bermuda (fund location)

Size Of Company. Portfolio companies valued at DM 50 million at time of management change

Who Brought In The Team/Individual. Investor Group which consisted of 60 domestic and international investors

Goal Of Assignment. Liquidate 7 portfolio companies for greatest value. While looking for buyers, improve operations and get ready for sale.

Actions Taken. Improved all the portfolio companies operational performance, changed revenue streams in some, implemented a sustainable growth strategy in others and changed a R/E investment in Berlin from elderly housing (very low rent) to commercial in a creative win/win situation.

Results. All portfolio companies were sold and DM 93 million returned to the investor group for an 80% increase in return

Assignment Duration. Acted as Director for 4 years (not a full time assignment)

Resources Utilized. Self and team of Bain Consultants

Testimonial. The larger investors stated that they were very pleased with the results.

Submitted By. Gary Wilkinson