GI Partners has adhered to a consistent and disciplined investment approach since its founding in 2001. The team seeks to identify situations that offer substantial upside potential with limited risk of loss of capital. Examples include:
Build-up of a platform investment- Companies ideally suited to carry out an acquisition program due to a leading competitive market position
- Companies operating within a fragmented or overlooked market
- Management team has a proven track record of success in integrating add-on acquisitions
- Sector has favorable supply-demand dynamics that support revenue and earnings growth
- GI Partners will provide the organizational infrastructure to identify, due diligence, finance and complete acquisitions, while the company focuses on thoughtful integration, competitive product positioning, services and customer relationships
Underperforming businesses experiencing financial distress- Event-driven cyclicality, such as a dislocation in the capital markets or a geopolitical event, which is frequently followed by an economic slowdown or recession
- Company or asset specific distress, which can result from customer defections, inappropriate capital structures or general mismanagement
- GI Partners can provide operational guidance and capital assistance
Companies or assets that are misunderstood or have fallen out of favor- Execute on a contrarian, value-based investment strategy that exploits the tendency of select sectors to periodically fall out of favor with investors
- GI Partners seeks to align itself with management and either take the company private (in a “public to private”) or purchase the company or asset in a privately negotiated transaction
- Focus on long-term performance and industry fundamentals
- GI Partners will implement necessary changes that will ultimately lead to significantly improved performance and valuation
Corporate divestitures or spinouts- Companies that are re-evaluating their strategic plan and capital allocation policies
- Spin off of a division that can affect the broader corporate purpose or change strategic direction
- Companies or divisions that may lack the operational or capital resources to thrive on an independent basis
- GI Partners will identify initiatives and infrastructure required to facilitate stand-alone operations