Investments: Process |
We seek to assemble a diverse group of portfolio companies that are capable of generating predictable operating cash flow while having relatively stable product life cycles, strong competitive positions and improving market share in established industries and management teams with proven track records.
Aegis carefully will select investments that offer a high probability of generating significant risk-adjusted returns. The methods by which we establish the proper purchase price and organize an effective integration plan for monetizing intellectual capital play critical roles in management of our private investment portfolio. Another key role is the maintenance of a collaborative work environment with and among the management of a portfolio company, Aegis and, where relevant, a Corporate Sponsor.
To facilitate the investment selection process, we will undertake the following activities:
Ø Perform financial and strategic due diligence reviews to become familiar with a potential investment’s operations, processes and internal capabilities in order to negotiate an appropriate purchase price based on financial, legal and accounting analyses of a company’s historical performance.
Ø Establish policies for monitoring and managing our portfolio from the time an investment is made until it is sold or otherwise liquidated, including the development of operating strategies to both improve short-term profitability through cost-cutting programs and create revenue opportunities that provide long-term growth and viability.
Ø Define the range of expected rates of returns generated by each portfolio company within the context of Aegis overall investment portfolio and by which to gauge the appropriate time and method for seeking an investment’s exit or liquidity event.
Collectively, these activities guide the manner in which Aegis manages the investment cycle for each investment in its private portfolio. This investment process will be undertaken and followed by our portfolio managers, analysts and Investment Committee.