Defining and professionalising our sector

Defining and professionalising our sector

We didn’t realise that we were at the forefront of defining a new sector

  1. At the turn of the 20th Century, PE buyers and sellers had corporate finance advisers acting for them. So who represented the management team’s interests?
  2. No-one.

This was particularly stark in secondary buyouts; managers had to commit earned proceeds to facilitate a transaction, without independent negotiation or visibility on new equity incentive arrangements. And, as structures were already determined, there was little room for tax planning.

The good news is that the market has evolved. When we set up in 2005 it was with the purpose of providing independent and specialist advice to management teams.  Having defined the role and professionalised its delivery, this has shaped the market we see today.  As private equity buyers seek high-quality international assets and management teams to run them, management teams are taking a more prominent role in sale processes.

Integral to sale discussions

Management advisory provides structure and stability to the process of agreeing terms and is an integral part of private equity transactions.   Working closely with sell-side advisers, terms are agreed before management is required to commit. It’s beneficial for sellers and buyers, avoids any last-minute disruption and enables buyers to execute quickly.

Now the US – next Asia

Firmly established in the UK and Continental Europe, management advisory has a strong uptake in the US, where sponsors and advisers are adopting European practices, seeking new ways to streamline sale processes. The potential opening up of China and Asia offers more opportunities.

As the demand for management representation has grown, we’ve expanded internationally. With offices in New York, London, Frankfurt and Madrid, we draw on our experience of global funds operating locally. For example, our US office serves the US deal market as well as providing insight into US funds transacting in Europe.

Our aim is to be the pre-eminent management adviser of choice across global mid and large cap private equity markets.

We didn’t realise that we were at the forefront of defining a new sector

  1. At the turn of the 20th Century, PE buyers and sellers had corporate finance advisers acting for them. So who represented the management team’s interests?
  2. No-one.

This was particularly stark in secondary buyouts; managers had to commit earned proceeds to facilitate a transaction, without independent negotiation or visibility on new equity incentive arrangements. And, as structures were already determined, there was little room for tax planning.

The good news is that the market has evolved. When we set up in 2005 it was with the purpose of providing independent and specialist advice to management teams.  Having defined the role and professionalised its delivery, this has shaped the market we see today.  As private equity buyers seek high-quality international assets and management teams to run them, management teams are taking a more prominent role in sale processes.

Integral to sale discussions

Management advisory provides structure and stability to the process of agreeing terms and is an integral part of private equity transactions.   Working closely with sell-side advisers, terms are agreed before management is required to commit. It’s beneficial for sellers and buyers, avoids any last-minute disruption and enables buyers to execute quickly.

Now the US – next Asia

Firmly established in the UK and Continental Europe, management advisory has a strong uptake in the US, where sponsors and advisers are adopting European practices, seeking new ways to streamline sale processes. The potential opening up of China and Asia offers more opportunities.

As the demand for management representation has grown, we’ve expanded internationally. With offices in New York, London, Frankfurt and Madrid, we draw on our experience of global funds operating locally. For example, our US office serves the US deal market as well as providing insight into US funds transacting in Europe.

Our aim is to be the pre-eminent management adviser of choice across global mid and large cap private equity markets.