Creating value for its investors in a responsible and sustainable way is core to Quadria’s investment philosophy. As sector specialists, our investment focus gives us the ability to provide unique insights and deal with complex business issues faced by growing companies, differentiating us from other investment firms.
Quadria’s strategy is to leverage its industry knowledge, operational experience and network to unlock and create value throughout the investment lifecycle. With a “hands on approach”, the team drives initiatives from strategy setting to operational implementation. In every investment, we work side-by-side with portfolio companies to help them become more productive, efficient and valuable.
At Quadria, we take a systematic approach towards value creation, focusing on transforming our companies into unique, well established growth platforms.
We support them by conducting a detailed analysis of company circumstances as well as market dynamics to identify the best value creation opportunities. Part of this process involves transforming these opportunities into actionable business plans with a clearly defined set of targets and timelines. Subsequently, in the next phase, Quadria works alongside the company in driving operational efficiencies, creating organic and inorganic growth opportunities, and optimizing capital structures in order to drive growth at the portfolio companies
DEFINED VALUE CREATION METHODOLOGY
Quadria’s comprehensive due diligence on all its portfolio companies forms the basis of a detailed value creation plan which maps out the growth objectives, roles and targets for all the key members of the management team. These value creation targets are linked to the management incentive plan that is ultimately tied to Quadria’s exit.
DEDICATED OPERATING PARTNERS GROUP
Quadria’s Operating Partners are actively involved in advising and monitoring all the portfolio companies. They also participate on the Executive Committees to drive the overall execution of the business plans.
Quadria’s strategy is to maximise value for investors at the time of exit, usually within a three to five year horizon.
We believe that executing a successful exit at the right time and achieving the desired returns is critical to the success of the Fund. Additionally, by building our portfolio companies into market leaders with strong growth prospects, operating performance and market differentiation, we also aim to reduce dependency on the equity markets.
To maximise value upon exit, we focus on the following:
Exit analysis is done at the onset of transaction initiation with key elements structured into transaction documents to ensure exit certainty while allowing for sufficient flexibility to maximise exit valuation. To ensure alignment at the management level, we also link the portfolio company’s management incentive plan with Quadria’s exit
We groom investments for potential trade buyers and consolidation plays also through our value creation. We also focus on generating early cash returns to our investors. We target an average holding period of 3 - 5 years
Throughout our investment period, we continuously evaluate exit options and at an appropriate time actively support the execution of the exit plan through our M&A and capital market relationships. Our strong financial markets network, both public and private, also allows us to identify and negotiate with the most ideal buyers