Luxury's Strategic Bloodhound

View Original

PE Firms: Is Your LBO Model a Ticking Time Bomb Leaving You in Quicksand?

My take on the Financial Times article “Private equity groups’ assets struggling under hefty debt loads, Moody’s says”:

  • PE firms face increasing pressure from the "hefty debt loads" of their leveraged portfolio of companies.

  • The rate increases deepen the debt servicing burden problem, putting additional strain on the financial health of PE-backed companies - and increasing the likelihood of bankruptcy.

But why?

A stark reality today: "... approximately 20% of large companies acquired through LBOs go bankrupt within ten years". With higher interest rates, it's easy to see bankruptcy rates move towards one in three in the coming years. That’s the problem.

Yes, the situation may be critical, but a free life raft is available. My model throws any PE's asset a lifeline to stave off bankruptcy on a "two and twenty" fee structure. My business model is transparent: a finders fee (2%) on the quantified unseen value and a performance fee (20%). My performance fee is the fee paid on the incremental revenue generated beyond a specified minimum x-million threshold. My success is directly tied to yours.

My model helps PE firms and enterprises generate higher returns for their investors and shareholders. Sweeter still, my proprietary model maximises your profits through increased management fees and carried interest. It can make the performance of your funds industry-leading and dominant. To get personal. My model's proven accuracy after a decade and insights from 180+ enterprises is 92%. My personal record carries a 100% track record. And have successfully unlocked over $3.5 billion in new documented reoccurring revenue in client brands. Let alone the $200+ billion found across, and still locked, in more than 180 prospects. I’m spoilt for choice.

My policy is let's always look for the truth, wherever it comes from.

How? Legendary designer Paula Scher at NYC design agency Pentagram, in 1998, famously sketched the iconic Citi logo on a napkin while listening to the client's needs, a design earning her $1.5 million in five minutes. Citigroup's total assets today are valued at $2.3 trillion. Like Scher, my "Strategic Bloodhound" instincts have been honed over five decades and were born from my life-changing journey. Today, I instinctively see organisations' hidden billions, and significantly, I can also illuminate the unseen path to higher returns for your AUMs.

Schedule a call or visit today. In one call, I'll tell you a 'yes' or 'no' in less than five minutes. And you'll know how much your asset is underperforming. I can see your AUMs' missing billions. But the question is, how much do you desire?