Euro Credit’s loan and financing specialists interface with independent private equity wealth advisors and other financial advisory professionals to optimize value and to create liquidity opportunities, which can then be used for other purposes, including alternative private equity investments that have not yet reached the public debt or equity markets. Those investments can play a critical role in the strategic component of an investor’s portfolio by adding alpha through unique or intermittent opportunities, unlike core portfolio holdings that generate reliable growth and regular income.
Driven By Partnerships
Euro Credit can connect its clients with third-party private equity advisors that target their private equity investments into operating companies that want strategic partnerships in which the advisors’ resources and management expertise can enhance operations and add real value to the company. The most successful private equity advisors identify untapped value in businesses with sound management structures and expertise. They do not limit their investments to any specific industry sector or development- or growth-stage companies but instead focus on the skills and abilities of the people in leadership roles, and the willingness of those people to evaluate ideas that the advisors bring to them. Those businesses can be startups, well-established companies that are seeking to maintain relevance in a rapidly-changing business environment, or corporations looking to elevate their status to new levels.
The advisors’ partnership-driven philosophy focuses on a company’s inherent value that might have been overlooked by more traditional private equity firms, which might limit their analyses to current finances. When that inherent value has not yet been fully reflected on a company’s balance sheet, the partnership-driven advisor will assign a higher valuation to the enterprise, which then enables them to consider funding more challenging investment opportunities that might take longer to generate returns or to present a viable investment exit strategy.
Euro Credit extends this partnership philosophy by creating the financing and liquidity opportunities that allow our clients to invest in the underperforming business that the independent private equity advisors in our referral network have identified. In most cases, those underperforming businesses have been unable to resolve strategic or operational challenges with their own internal finances and expertise, but still have a core group of seasoned and qualified managers that understand the value of third-party investments and involvement in management. The best managers participate in the partnership by staying vested in the company’s long-term success with performance-based equity plans.
When a client approaches Euro Credit for financing and liquidity that will be used to invest in an operating company on a private equity level, we effectively partner with the client to structure financing that supports their collaborative relationship with the company. We open doors that give the client exclusive access to financial resources and independent private equity advisors who can consult and advise on both strategic and operational management issues. Our clients, either on their own or in conjunction with those advisors, use the liquidity resources that we develop to add new structures to a struggling business and to enhance existing operations. These partnering efforts help the business’s management to generate new and long-lasting value in the enterprise, and that value goes back to the bottom line of the clients’ portfolios.Experienced investors understand that a company’s management team needs to maintain its autonomy and its ability to make decisions without becoming bogged down in bureaucracy or limitations on decision power. In view of this, the optimal private equity investments are designed to foster a partnership-level relationship with management for the establishment of strategic goals and priorities. Management retains the full authority and responsibility for daily operational decisions. Our financing and liquidity services pave the way for the greatest long-term value when this partnership philosophy is at the core of every transaction.