Value enhancement
Capital is a commodity. To build a world class business more than funding is required. Vitruvian Partners brings a wealth of experience to assist entrepreneurs and management teams to realise their businesses’ full potential.
Vitruvian Partners brings three sources of value to our investments:
- Strategic Initiatives: In many of our investments, focus on strategic initiatives is the major source of value creation. Such initiatives may include new products, deployment of new technology, acquisitions, disposals, outsourcing and international expansion
- Financial Structuring: We aim to create the optimal capital structure for any deal and specifically the right proportion of debt to equity thereby ensuring the right balance between capital efficiency and flexibility to pursue strategic and operational objectives
- Operational Improvement: We will agree with management a programme of operational improvements to be made to the business post investment as the specific opportunity allows. We will ensure that management has the necessary resources and support to deliver on this programme
We take an active role on the boards of our funds’ investee companies. We help management develop a vision for their business, create a strategic plan and monitor the performance of the business against the plan. In addition, we are available to make decisions quickly in response to external events, to support the company’s corporate finance activities and to help develop the senior members of the organisation.
We usually seek to capitalise on the value created in the business during our period of investment through a sale or flotation of the company. There is no fixed date by which we aim to have made an exit from each investment, as the specific timing is often influenced by external factors. As a rule of thumb, the average investment period for our previous deals has been approximately 4 years. However significantly longer or shorter periods are possible, depending on specific circumstances.
