Approach
Approach

In today's increasingly competitive fundraising environment, private equity firms must appropriately position themselves in the market. Stanwich Advisors has extensive experience in structuring private placement memoranda and preparing presentations in order to properly distinguish its clients from the competition. Stanwich Advisors works closely with its clients throughout the fundraising process in order to achieve an efficient, well-balanced fundraise.

1. Pre-Marketing Due Diligence

Stanwich Advisors employs a methodical and disciplined diligence process, which informs the firm's underwriting decisions and yields valuable insights for clients

  • Work closely with clients, as well as third-party experts, to develop a thorough understanding of the key drivers of each client's target market, investment strategy, and historical performance
  • Conduct comprehensive qualitative due diligence, including speaking with current and former portfolio companies, competitors, bankers, lawyers,  government officials, and investors, among others
  • Perform detailed quantitative due diligence, including reviewing historical and projected investment performance, portfolio company financials, entry/exit data, performance vs. relevant public market indices, value creation attribution analysis, and investment performance in local currency, if applicable
  • Identify organizational and/or structural areas that need to be augmented or improved before raising capital from institutional investors (e.g. back office, reporting, compliance, etc.)
  • Speak with institutional investors to assess demand and identify potential lead and/or anchor investors
2. Pre-Marketing Advisory
  • Leverage the insights gained through Stanwich Advisors' due diligence process to provide valuable advice with respect to client positioning as well as issues that need to be addressed prior to coming to market
  • Provide detailed information regarding the organizational, structural and performance characteristics required by institutional investors with an emphasis on creating a strong alignment of interests with potential  limited partners while accomplishing each client's objectives with respect to fund size, terms and conditions, and investment scope
  • Help client prioritize near, mid, and long-term initiatives in order to facilitate an efficient fundraise and ongoing marketing efforts (e.g., back office, human resources, financial controls and reporting, investor relations, etc.)
  • Provide an objective perspective on the current fundraising environment
3. Material Preparation

Stanwich Advisors works closely with its clients to produce highly tailored, best-in-class marketing materials that are uniquely suited for an efficient fundraise

Material Preparation

  • Leverages the insights gained through due diligence to prepare customized marketing materials that highlight each client's strengths, while proactively addressing likely issues and/or questions  from the market
  • Work with client to produce all of the relevant marketing material prior to formally approaching investors in order to ensure that each client is well-positioned to respond to immediate requests for additional information
  • Documents reflect comprehensive list of qualitative, quantitative, operational and compliance related materials sought by sophisticated global institutional investors
  • "Institutionally wrapped" materials provide potential investors with comprehensive information in easily digestible formats

Representative Materials

  • Qualitative Material
    • Private Placement Memorandum, Due Diligence Questionnaire, Presentation, References, Attribution, Detailed Case Studies
  • Quantitative Material
    • Value Creation Attribution Analysis, Public Market Equivalent ("PME") Analysis, Unrealized Valuation Backup/Support, Entry/Exit Analysis Projected Performance Sensitivity Analysis
  • Operations & Back Office
    • Reporting, Cash Management, Compliance, AML, ESOP
  • Virtual Data Room
4. Road Show & Manager Reporting

Stanwich Advisors works closely with its clients to coordinate highly efficient and well-organized road shows and supplies detailed activity and status reports on a regular basis

Roadshow

  • Prioritize investors based on market importance and develop an integrated global distribution plan
  • Contact, qualify, and prioritize potential limited partner meetings in order to focus on those investors that are strategically valuable  and/or likely to participate in initial closes  and create momentum in the market
  • Manage and coordinate investor meeting logistics
  • Provide detailed pre-meeting profiles of potential investors, including their investment process, existing  relationships with similar strategies, allocation constraints, and key decision makers
  • Follow-up with potential investors on a timely basis and provide continuous feedback to clients regarding  appetite, timing, and next steps
  • Manage and coordinate investor's due diligence requests and processes

Manager Reporting

  • Road Show Calendar
    • Client availability, Road show meetings, Onsite diligence
  • Pre-Meeting Notes
    • Organization structure, Investment process, Portfolio allocation and existing relationships
  • Status Report
    • Contacts, Materials sent, Next steps
  • Virtual Data Room Activity Report
    • Login date/time, Documents reviewed, downloaded, etc.
  • Pipeline
    • Investor status, bite size, and timing, Concentration analysis by type & region
5. Limited Partner Due Diligence

Stanwich Advisors plays an active role in facilitating investor due diligence and in advising clients during the closing and post-closing period

Limited Partner Diligence

  • Leverage client time by completing  investor due diligence requirements, including questionnaires, quantitative data requests, and answering additional frequently asked questions
  • Engage the client, whenever appropriate, in order to facilitate further pre-onsite diligence calls and/or meetings
  • Assist client in preparing entire organization for onsite due diligence meetings, including junior investment professionals as well as back office, operations and compliance personnel
    • Prioritize relevant internal documentation (broken deals, investment memorandums, pipeline tracking, compliance, etc.)
    • Provide guidance regarding questions, hot button issues, etc.
  • Provide guidance to prospective investors with respect to the most relevant references to address to specific questions/concerns
6. Closing & Post-Closing Support

Closing

  • Advise on issues related to limited partner allocation, diversification, etc.
  • Coordinate closing and assist in post-closing activities
  • Liaise between limited partners and the client's fund counsel

Post-Closing

  • Advise on the development of "best-in-class" investor relations and reporting
  • Consult on the preparation of annual meeting presentations, quarterly reports, etc.
  • Maintain dialogue with high potential candidates for subsequent funds
  • Facilitate meetings with prospective investors prior to formally launching subsequent offerings
  • Provide general market intelligence
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