When a leading global alternative investment firm encountered a surge in workload from heightened portfolio company acquisitions, they turned to Evalueserve for support in managing their data-intensive tasks. This collaboration resulted in Evalueserve becoming a Center of Excellence for the client’s operations, achieving a notable boost in productivity over the last two years, coupled with consistently high feedback scores.
The Challenge
The U.S.-based company overseeing approximately $60 billion in assets under management (AUM) specializes in providing both debt and equity capital to middle market companies across various industries. Their diverse investment portfolio includes sectors such as Business Services, Chemical, Consumer/Retail, Healthcare, Industrials, and TMT.
The firm required assistance in handling tasks related to unstructured data, which can be laborious and time-consuming. In addition to their daily operations, a portion of their work involving portfolio companies (Portco) necessitated processing large volumes of raw data files to derive valuable insights for performance evaluation. Due to their moderate staffing capacity, senior leaders recognized the need for a reliable partner with expertise in the private markets industry to support their associates in managing these data-intensive tasks.
Given Evalueserve's cross-domain expertise and access to diverse subject matter knowledge, including a deep understanding of the private markets industry and robust data analytics capabilities, the client has selected us for assistance in addressing these challenges.
Our Solution
To begin, our team conducted a thorough analysis of the tasks and functions requiring support for analysts and associates. This allowed us to tailor our solutions precisely to their needs. The tasks requiring Evalueserve’s expertise included managing extensive unstructured data, executing activities related to the deal lifecycle, and providing Portco support to assist the client in formulating growth strategies. As a result, we identified the following key components essential for providing effective support to the client:
- A deep understanding of dynamics within private markets.
- Presence across multiple delivery locations to ensure accessibility and responsiveness.
- A flexible team capable of quick action, as much of the work would be on an as-needed basis rather than pre-planned.
- Multi-dimensional support including Financial Research, Data Analytics, CRM, Business Reporting, FP&A.
Evalueserve has assembled a globally distributed team of specialists to provide continuous, 20/5 support. Our experts from Chile delivered real-time assistance, complemented by the India team’s overnight support, ensuring extensive coverage. Through our tailored managed services framework, we have customized our support to integrate with the client’s operations, enabling them to focus on strategic growth initiatives while we handle data intensive tasks.
Our team of experts delivered assistance in key areas, including deal origination and valuation, deal execution and due diligence, and PortCo support. Our services ranged from conducting market studies and identifying opportunities to benchmarking companies and preparing financial datapacks, all customized to meet specific needs and timelines. In the end, Evalueserve managed approximately 25% of the projects related to company and industry research.
PortCo support was prioritized given its critical role in steering investment growth and operational strategies. Our collaboration extended to working closely with the CFO and Finance team, delivering reports, data summaries, and insights tailored for C-suite executives to accelerate growth initiatives. Furthermore, to ensure comprehensive coverage, we assigned a dedicated full-time equivalent (FTE) resource to support multiple PortCos, maximizing resource utilization to reach 100%.
In the area of deal origination and valuation, we implemented a range of strategies to provide valuable support to analysts and associates. Through opportunity identification, our team researches and determines viable investment prospects within targeted industries. Comprehensive market studies are conducted to assess growth possibilities across diverse sectors, considering factors such as market size, influential trends, and regulatory considerations. Additionally, we developed financial models including a leveraged buyout model, carefully formulating entry and exit multiples based on well-informed assumptions, ensuring a robust valuation framework.
For deal execution and due diligence, our solutions were geared towards efficiency and thoroughness. We crafted datapacks, distilling vast unstructured data into actionable insights, facilitating swift decision-making processes. Moreover, our team conducted comprehensive financial and commercial due diligence, examining potential targets from multiple angles to ensure informed investment decisions.
In PortCo support, we fostered effective operations through collaboration and streamlined reporting. By partnering closely with the CFO and the Finance team, we facilitated streamlined data analysis, providing invaluable insights and reports to inform growth strategies. Furthermore, we developed customized financial reporting packages, seamlessly integrating operational KPIs and diverse data segments for efficient and insightful financial monitoring.
For one of their portfolio companies, we offered tech consulting services by conceptualizing and building a Project Price Estimating Tool in collaboration with their engineering team. This tool streamlined and centralized the pricing process by gathering inputs from all internal departments, replacing the previous manual and fragmented approach.
Business Impact
The partnership between the global private equity firm and Evalueserve has yielded significant success for the client across multiple fronts. By harnessing Evalueserve's expertise, the client has witnessed a notable acceleration in deal evaluation and execution, resulting in a streamlined process and enabling swifter, well-informed decisions.
Furthermore, the analysis of portfolio companies has undergone a marked improvement, leading to enhanced operational efficiency, and providing crucial support for strategic growth initiatives. This enhancement has played a pivotal role in driving the overall success and expansion of the client's investment portfolio.
Evalueserve's close collaboration with the firm has been instrumental in achieving these outcomes, solidifying its position as a Center of Excellence. With a demonstrated track record of increased productivity over the past two years and consistently high feedback scores, Evalueserve's proactive approach to deal identification and expedited deal evaluation, coupled with round-the-clock access to our offshore Center of Excellence Team, have been pivotal in driving the client's success.
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Accelerated deal evaluation and execution
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Enhanced operational efficiency
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Round-the-clock support
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Overview & Impact
Evalueserve helped the firm streamline operations and significantly enhance portfolio company analysis to drive growth strategies, ultimately establishing itself as a Center of Excellence for their operations.
Deal Lifecycle Coverage
Comprehensive PortCo Support
- Improved Index Management Process
- Increased Efficiency Through Automations