How we provided deal assistance to an Investment Banking client on the sale of a portfolio

March 17, 2023

The Context

The client, an Investment Bank, wanted the TresVista team to update the deal tracker, and track GP consents, buyer permission status, and buyer engagement based on conversations of the client with the GPs and the potential buyers, over the period of the marketing stage. The client further requested the team to maintain an inventory tracker and manage the client Data room by renaming, redacting, and organizing documents received from a seller within VDR to help buyers in their due diligence process. The client also sought assistance to update the portfolio summary with the latest cash flows and conduct a public analysis to help the seller get a fair idea of the current market mentality.

The Objective

To provide deal assistance on the sale of a portfolio with NAV of circa. $1.8bn and understand how a portfolio of funds is marketed and traded to get the best possible price.

The Approach

The TresVista team followed the following process:

  • Inventory Tracker: Tracked the uploaded documents by the seller which included legal agreements, financial reports, and CAS documents
  • GP Consents: Tracked GP’s consent to share information with potential buyers under an NDA to which the GP was a third-party beneficiary
  • VDR Management: Uploaded the renamed and redacted inventory to VDR for buyer to review
  • Portfolio Monitoring: Updated the cash flow input tab of the portfolio summary for existing and future cash flows post reference date
  • Buyer Engagement: Recorded interest of buyer based on client-buyer interactions, which included pricing feedback and deferral preference

The Challenges We Overcame

The major hurdles faced by the TresVista team were:

  • Version Control: As the buyer feedback kept coming in, the client and the TresVista analyst updated the deal tracker which made it difficult to identify changes made by the client
  • Transparency Barrier: Sometimes, the deal DL was dropped from the conversation thereby making the tracker prone to missed updates on the side chats
  • Client Confidentiality: Documents were redacted to hide the seller’s identity, but scanned copies were non-searchable and human error in large inventory sets exposed the seller’s identity
  • Portfolio Updates: Impact of changes made in the Portfolio Summary had to be carefully analyzed

The TresVista team overcame these hurdles by relaying to the client before updating the deal tracker, the general geographic dynamic of the portfolio and deciding the hours at which subsequently client and TresVista analyst will update the tracker. For large inventory datasets, the team uploaded documents necessary for due diligence, and usually held on to upload legal documents which were generally required post buyer deciding stage. As such the seller’s identity remained confidential and if any legal document was requested by any buyer, the same was processed and shared with the concerned party. The portfolio was closely monitored as the funds drop off from the sale of portfolio or late additions were made.

Final Product (Sanitized)

The Value Add – Catalyzing the Client’s Impact

The TresVista team added value by suggesting sorting VDR inventory folders by date rather than names of the GP to avoid delinquency in manual uploads of follow-on inventory. The team created the Buyer Interest Matrix that would track buyers’ willingness to bid for the desired funds and help track the incoming bids before the deadline. The team also introduced dynamic updates in the final deliverable which allowed for multiple tab revisions by inputting one entry. The team layered the inputs of complex formula (instead of embedding) to make the output more dynamic for the client.