Case Study

Private Equity Fund set-up

28.02.2022

Client: A global community-led organisation with a strong focus on education, social welfare services and support for local communities. ​

Client Size: Targeting over 20 investments in 5 years

Project Trigger:

As part of a larger investment strategy the client wanted to set up a direct private equity channel.  The intent was to establish a private equity fund to invest and support growth for an investment return.

Our Scope

  • Developed the strategy and rollout plan.
  • Implemented a private equity fund that included an operating model for how investments were identified, prioritised, assessed and managed through to final return. 
  • This process included facilitating and driving the investment process for the first cohort of investments.

Project Outcomes

  • Building awareness with investor stakeholders to support the development of a robust and repeatable approach to PE investments. 
  • Developing the operating model including investment criteria that filtered investment opportunities.  
  • Establishing a transparent decision-making process and working closely and collaboratively with investors, Board Members, and Investment Committees.  
  • Developing tools such as online application forms, and establishing communication channels for investors, business applicants, and stakeholders. 

Our Value

  • Following the implementation of the PE fund Active Directions was able to continue to work alongside the business-as-usual team to ensure the fund operated in line with expectations.  This included conducting assessments on all opportunities to help prioritise and manage the volume of applications.

Top 3 Tips

Clients that propose to implement a private equity fund should:

  • Provide a business plan which calculates cash flow expectations and establishes their private equity fund’s timeline including the period to raise capital.
  • Understand clearly the levels and complexity of regulatory compliance.
  • Define and understand their business strategy and identify the sectors they want to target.