Framework for Building Value
We strive to align the organizational structure and management incentives of a portfolio company with the strategic objectives of the business. We invest in people and resources to strengthen and expand the organization to support accelerated growth. We aim to ensure that all the stakeholders of a business are aligned around a common set of objectives necessary for success.
Operationally, we partner with portfolio company management to re-engineer key business processes to improve efficiency, quality and service levels. We establish a common set of operating metrics to measure the success of the various initiatives. We seek to instill a return on invested capital discipline which leads to better decision-making on acquisitions, capital expenditures and balance sheet management.
As growth-oriented investors, we work to accelerate growth in our portfolio companies, building upon the secular growth themes underpinning our investments. To accelerate organic growth, we have developed expertise to drive revenue through (i) pricing strategies and tactics, (ii) sales force effectiveness and (iii) portfolio expansion - new products, new markets and customer segments, new geographies and new channels of distribution. In addition to organic growth opportunities, we work with portfolio company management to build scalable platforms - management, systems and processes - capable of accelerating growth through acquisitions. In the past decade, we have helped our portfolio companies to complete over 250 follow-on acquisitions totaling more than $24 billion in enterprise value at the time of acquisition.
We work with portfolio company management to assess and focus strategic priorities, including acquisition targets, to enhance a portfolio company's competitive positioning. When integrated properly, acquisitions can strategically reposition a business through improved scale and competitiveness.