Private Equity Value Creation

By Author: Amit kothiyal
Total Articles: 287
Comment this article

Given the economic climate and tighter lending requirements, many private equity firms have refocused their efforts on creating value in their portfolio companies through operational improvements, as opposed to financial engineering. Bertram Capital, a San Mateo, CA based private equity firm led by Jeff Drazan, Managing Partner, has always maintained a primary focus on driving growth and value creation through a hands-on, operationally focused approach to working with their portfolio companies.

Bertram Capital is particularly attracted to businesses in growing markets that have built a solid framework to support business expansion but have not yet realized their full potential. They seek to partner with superior management teams and provide ample capital and strategic resources to support future growth and ultimately build greater value for the shareholders. This approach to private equity investing will likely become more prevalent, as fewer opportunities exist for financial engineering with continued economic uncertainty.

Jeff Drazan and the Bertram team developed The Bertram Capital High 5SM, a proprietary, ...
... strategic framework for facilitating rapid, profitable growth. These five areas are the foundation Bertram Capital builds upon to drive significant value creation in their portfolio companies:

1. Marketing & Sales Improvements:
Aggressively focus on gaining access to new markets, developing new products and instilling best of breed operational practices.

2. Strengthening Management:
Partner with superior management teams, supplement the team as needed to support the businesses needs and ensure a shared vision for growth.

3. Outsourcing and Off-shoring:
Reducing costs through outsourcing and off-shoring, utilizing worldwide labor forces as appropriate while maintaining the highest quality products and services.

4. Leveraging Technology & IP:
Apply technology to improve operational efficiencies and create cutting edge product and service offerings, and strategically invest in and expand intellectual property (IP) portfolios.

5. Add-on Acquisitions:
Buy & build approach focused on effecting complementary and accretive acquisitions.

With their operationally focused approach to investing, Jeff Drazan and his team at Bertram Capital are well positioned to emerge as a leading middle-market private equity investment firm. As more private equity firms adopt this methodology, the outlook for middle-market business growth appears strong, particularly given the record level of private equity capital on the sidelines waiting to be deployed.

About Bertram Capital

Author is a financial expert who likes to research and share success stories and news in about the financial industry. This story covers the growth driving and value creation strategy by Bertram Capital, a San Mateo, CA based equity investment firm led by Jeff Drazan.