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CD Ventures has successfully built companies in partnership with numerous institutional investors and lenders since 1996.
CD Ventures’ business model is very unique, developed and refined by our firm’s principals over the past six years, to develop highly profitable businesses in a range of industries. We work to generate better than average returns for our investors utilizing a disciplined investment model that requires business ventures adhere to seven specific investment criteria in order to maximize the opportunity for success and minimize potential risks. Often these businesses are built through the consolidation of entrepreneurial companies where the combined entities have unique competitive advantages for growth through scale or strategic positioning.
Our model appeals to a broad range of investors – large institutional equity and mezzanine funds seeking qualified investment opportunities requiring $15 - $50 million of initial capital for management and leveraged buyouts - and smaller venture capital firms looking to participate in the lucrative initiation of buildups and consolidations. CD Ventures’ approach provides a unique opportunity for investors to realize higher returns on their invested capital with less risk, relying on our extensive research, transaction formulation, due diligence and on-going management participation in the portfolio company. Our business model, which is markedly different from other investment vehicles, features two key advantages that yield meaningful tangible benefits for investors, including:
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Internally Originated Deals—We originate all the transactions we bring to market. Our team of professionals research and identify attractive industry sectors, recruit qualified CEOs who participate as co-founders, and we locate platform companies to initiate the investment opportunity. This provides our “investor partners” with better economics, often participating as the “first money in”, which usually yields higher returns. And, until financing commitments are in place, CD Ventures, bears all the risk for broken deal costs if transaction is not consummated.
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Ongoing Management Role in Portfolio Companies—Consistent with our position as a company founder, we maintain an ongoing role with the portfolio company as part of the management team, leading the corporate development and capital formation activities. We deploy our experienced team of professionals to fulfill this role, leveraging our extensive network of investors and lenders, and thereby free the CEO to focus on operational concerns and integration challenges. We know what it takes to realize successful build-ups and consolidations and through our involvement we mitigate our “investor partners” risk by constantly evaluating critical success factors – systems, integration, and capital expenditures among others – ensuring that adequate resources attend to these areas.
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