Private Equity

TresVista provides end-to-end services for all stages for private equity clients, from fund raising to investing and managing the portfolio, and finally realizing value. The spectrum of services enables private equity firms to better screen, evaluate, and manage investments.

Fund Raising

TresVista provides integral services to specifically support a fund raising process. In our experience, fund raising activities can extend over 6-18 months and may overlap with the period of investment deployment. Utilizing TresVista’s services allows the fund to eliminate fixed costs, increase flexibility, and to free up internal resources to focus on the fund’s core competence of investing and fund raising.

Assessing Investor Appetite
– Identifying LPs
– Benchmarking
– Fund Status
Research
– Funding Environment
– Macroeconomic
– Sector
Presentation Creation
– Road-Show Materials
– Validating Fund Strategy
Others
– Portfolio Analysis
– Portfolio Ageing
Request & Guidelines Provided
  • Asked to work closely with a Director of the fund to help identify, screen, and profile potential investors/LPs across the world
  • Provided with the investment strategy for the infrastructure fund and broad criteria for identifying the potential LPs
Methodology
  • Sourced a list of existing global investors in the infrastructure sector using publicly available information. Used databases such as preqin, infraconnect, press searches, bloomberg, and spoke to industry experts to make the list comprehensive
  • Phase II required us to narrow our focus on Sovereign Wealth Funds (SWF) as a type of potential LP
  • Created a detailed 40 page presentation with a focus on analysis of SWFs existing assets under management, investment and capital committed to infrastructure sector, geographic focus, and recent fund developments
Final Deliverable & Client Takeaway
  • Provided the client a forward looking analysis on the LPs (SWF) by categorizing the funds on a scale of high, medium, and low based on their existing exposure and appetite for infrastructure sector investments

Pre Deal

TresVista provides a variety of services that enable private equity firms to better screen and evaluate investment opportunities. This enables senior professionals to focus on strategic decision making.

Valuation
– Public Market Overviews
– Public Market Valuation
– Precedent Transaction Analysis
– Discounted Cash Flow
Modeling
– Financial Modeling
– Scenario Analysis
– Validating Assumptions
Research
– Industry/Market Analysis
– Landscaping
– Company Profiling
Deal Analysis
– Summarizing Sell – Side IMs
– Analyzing Deal Viability
– Business Diligence
Request & Guidelines Provided
  • Asked to work closely with a Principal in devising an India entry strategy
  • Phase II of the request required us to narrow our focus on particular sectors and companies
  • Provided with desired investment objective keeping in mind restrictions in terms of industries the fund was allowed to invest in
Methodology
  • Initiated the search by segmenting 10,000+ companies by different NIC codes
  • Sourced the list from multiple sources such as bloomberg, industry associations, CMIE, and trade journals
  • Filtered the list down to 500 companies based on size and scale
  • As per client’s request, profiled 5 sectors to understand industry dynamics
  • Profiled 66 companies with a special focus on management and their affiliations, historical stock performance, company financials, operations, and valuation ratios
Final Deliverable & Client Takeaway
  • The client conducted management meetings with 15 Indian companies shortlisted on the basis of our analysis

Deal Structuring

TresVista supports deal execution and frees up in-house execution capability, allowing senior investment professionals to focus on the tactical decision making and deal execution.

Transaction Processing and Analysis
– Business Due Diligence
– Sensitivity Analysis
– Capital Structure Analysis
– Fund Requirement Analysis
– Returns Analysis
Modeling
– Financial Modeling
– Operational Modeling
– Leveraged Buyout Model
Structuring Management Incentives
– Analyzing Exit Payouts
– Modeling Structured Payouts
Credit Analysis
– Running a Separate Model for
Debt Lenders
– Modeling Specific Terms
– Analyzing Covenants
Request & Guidelines Provided
  • Asked to support the Founder and Managing Director to evaluate a deal in the healthcare space as well as suggest the optimum capital structure to meet the fund’s expected return with minimum risk
  • Provided with fund’s strategy, expected return, company financials, and business projections
Methodology
  • Understood the business structure from management to model the business
  • Made a 10-year quarterly model with separate financial statements for each of the 32 planned centers for expansion
  • Ran a sensitivity analysis on variance in EBITDA, change in cash flows and timing of cash flows, giving the fund a specific investment range
  • Generated a transaction analysis output sheet
  • Proposed optimum deal structure while being involved on calls with lawyers
Final Deliverable & Client Takeaway
  • Enabled the client to better evaluate the deal and negotiate the best value for his investment

Managing and Growing Portfolio

TresVista serves as an internal team, adding to the capacity of the clients firm to support their internal monitoring of portfolio companies’ performance.

Documentation
– Portfolio Reporting
– Preparing Board Materials
Presentation
– Presentation to Portfolio
Company Management
– Investment Committee
Memorandum
Valuation
– Update Models
– Public Market Valuation
– Precedent Transaction
– Portfolio Valuation for Auditors
(FAS 157)
Assessing Growth Opportunities
– Market Performance &
Monitoring
– Evaluating Strategic
Alternatives
Request & Guidelines Provided
  • Asked to support the CEO of the portfolio company in making separate models to enable budgeting and evaluate potential investment opportunities
  • Provided with historical financial data on the company and details of past projects
Methodology
  • Prepared a detailed budget model to capture the key revenue and cost drivers of the business by working closely with the CEO
  • Assisted in identification of key earnings sensitivity parameters
  • Created returns analysis tab containing a detailed waterfall
  • Constructed a flexible model with detailed drivers and switches, enabling evaluation of potential projects and investment opportunities
  • Enabled review of relevant indicators to ensure that the deal/project outlay value was quantified and that capital spending met internal investment criteria
Final Deliverable & Client Takeaway
  • Presented a detailed model layered with drivers and switches that supported budgeting as well reporting requirements
  • Delivered a customized project evaluation model, enabling review of investment opportunities. The model assists management to evaluate projects better and take informed decisions faster

Exit/Realize Value

TresVista conducts diligence on exit opportunities based on alternatives such as an initial public offering, public market sale (in the case of a publicly traded portfolio company), sale to strategic buyer, or secondary sale to another fund.

Documentation
– Investment Memorandum/
Prospectus
– Updating the Prospectus
– Road Show Materials
Valuation
– Financial Modeling
– Public Market Valuation
– Precedent Transaction
– Precedent IPO Valuation
Analysis
– Strategic Sale Implications
– Affordability Analysis
– Transaction Analysis
– Returns Analysis
Identify Buyers
– Identifying Suitable Strategic
Acquirors
– Screening For Relevant
Financial Buyers
Request & Guidelines Provided
  • Asked to support the Partners in analyzing exit valuation for their renewable energy portfolio company
  • Provided with outline of the specifics to be reviewed for the valuation exercise, including details of the portfolio company
Methodology
  • Performed a screening for public and private players in the renewable energy space in the region and compiled a list, based on their offerings and capacities
  • Screened and reviewed renewable energy companies with a detailed analysis and history of all private equity investments and acquisitions in the sector and region
  • Computed their current and forward trading multiples and arrived at a range of exit multiples
  • Provided the range of valuation multiples based on the analysis and helped identify key metrics enabling premium valuation
Final Deliverable & Client Takeaway
  • Provided a detailed review and synopsis of deals and exit valuations within the Indian renewable energy space and the exit valuation range
  • Helped the private equity firm take an informed decision with regard to exit opportunities, enabling them to realize optimum return on investment