Situation
The shareholders of one of the largest investment and industrial groups were concerned about the increase in its consolidated market value. The group has in its portfolio hundreds of assets of various profiles and sizes in several countries.
Approach
By analyzing the asset portfolio, its composition, structure and inter-industry relationships, it becomes possible to identify potential growth points for the value of assets and the group as a whole.
An in-depth analysis of the core competencies of the group revealed the specific characteristics of the group's activities, what makes it better than others. On the basis of such unique skills, which are best discerned only from the outside, as a rule, the most viable strategies are built.
Potential growth points were formed at the intersection of market opportunities and core competencies of the group. According to the hypothesis considered, a significant increase in the value of the group was possible due to a change in approach to managing its assets.
Recommendations
Among other key findings in the project, it was concluded that the focus on asset management was insufficient. In particular, it was recommended that a specialized management company with several private equity funds under its management be established. It was suggested that part of the group's assets, in the process of their restructuring, should be transferred under the management of a new company. It was also proposed to clarify and adjust the existing practice of holding management and the creation of a fund management company.
Based on the generalized and analyzed real-world global best practice of investment funds, a model was created that meets the specifics of the group. A review of capital markets made it possible to recommend requirements to funds. The practice and average rates of return in the context of countries / sectors were analyzed, the key success factors of the raised funds and their performance indicators were identified.
Outcomes
Based on the recommendations, a new management model was built. As a result, a management company was established with three funds in which a number of assets were allocated to manage their growth. The resulting models made it possible to reorganize the management of a group of companies, restructure assets and attract low-cost capital to increase financial leverage. There was also a successful exit from some of the assets, some were put up for an IPO
