Enhancing returns for a large family office

Home Enhancing returns for a large family office

Client Background

The family office had a large asset pool across multiple asset classes and geographies which was giving sub-normal returns

Business Problem

  • The client required refreshment of the overall strategy and alignment of the portfolio in line with the strategy
  • The client required evaluation of each investee company on long term value creation potential and creation of a roadmap to either retain and grow the company or exit them

Solution Overview

  • Acuvon helped the client in refreshing the overall strategy of the Fund:
    • Build a consensus around shareholder aspiration and risk appetite
    • Agreed on the geographic and asset classes preferences
    • Applied the modern portfolio theory to determine the right allocation (strategic and tactical)
    • Developed internal processes for the different stages of the investment lifecycle; sourcing, screening, deal structuring, negotiating, investing and post-investment management
  • For 8 of the investee companies which were in early-stage, carried a deep-dive around the following:
    • Prepared a diagnostic report covering the potential of the sector, company, their strategy, operating model, structure, people, processes and system to make a recommendation on whether to retain and grow the company versus exit
    • For the companies which had potential, worked with the management in developing a detailed 5 year strategy and implementation plan
    • For the companies which are not aligned to the portfolio strategy or were not synergetic to other portfolio companies, created an exit plan to maximize the selling value

Business Impact

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Built a turnaround / growth strategy for 4 of the investee companies as a path to value creation

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Successfully exited 2 companies by finding the right partner / buyer post implementation of exit plan