How we add value

We provide significant support to management teams in developing and executing their business plans. In addition to our deal team, which is involved throughout the life of an investment, we draw on operating resources from our in-house Portfolio Support Group and third-party Operating Partner program. These combined resources underpin our highly operational approach to investing.

 

INTEGRATED APPROACH TO VALUE CREATION

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  • Advent Deal Team—responsible for our investment in a company and closely involved throughout the life of the partnership
  • Advent Portfolio Support Group—provides expertise to all parties by bringing tools, best practices and temporary resources to expedite value creation initiatives
  • Operating Partnerspart of our Independent Advisor Program, these executives mentor management and create an environment for change with the credibility of “having done it”
  • Management—responsible for executing improvement and growth initiatives, portfolio-company managers are at the core of the value creation plan

Portfolio Support Group

We believe value creation is enhanced if the strategy is implemented quickly. Our Portfolio Support Group provides expertise to management during the initial ownership phase to achieve rapid implementation of value creation initiatives through 100-day plans, sourcing and organization of temporary resources (e.g., IT, HR, process improvement), application of business tools and best practices, and general project management. In this way, the group helps management make more informed decisions and capture value more quickly.

 

Operating Partners

To enhance our own operational capabilities, we’ve developed relationships with over 70 senior industry executives, or Operating Partners, who act as independent advisors to Advent and the companies in which we invest. These executives, typically former CEOs, work alongside our sector teams and management to support the development of businesses through their industry knowledge, operational know-how, leadership experience and contact networks. As chairmen or supervisory board members, they help drive the growth and improvements that generate higher sales and earnings at our portfolio companies.

 

Creating long-term value

We are an active investor who seeks to build a collaborative relationship with management teams. We typically sit on the company’s board and are involved in developing and overseeing strategy. We do not take part in day-to-day operations, however, as we believe that is the role of the leadership team.

Working with management, our Portfolio Support Group and Operating Partners, we develop a value creation plan that identifies specific actions to help a company realize its full potential. We bring to the partnership sector knowledge and often first-hand experience working with businesses in similar situations, having invested in 325 private equity transactions in 40 countries. Through our international networks, we offer access to market intelligence, industry experts and general business contacts that can support a company’s development.

We can also assist with a variety of growth initiatives, including:

  • Product/service line development
  • International expansion
  • Acquisitions and divestitures
  • Strategic alliances
  • Offshore manufacturing
  • Technology and product sourcing
  • Channel development

Through this resource-intensive, operational approach, we seek to accelerate revenue and earnings increases at companies during our ownership and position them for long-term growth well beyond our time as an investor.

To see how we’ve worked with management teams to build value in businesses, click on the link below.

View case studies

 

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