Private Equity Fund set-up
Client Size: Targeting over 20 investments in 5 years
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.
- 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.
- 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.
- 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.