Strategy
Paine & Partners takes a differentiated approach to identifying promising investment opportunities, avoiding the traditional auction process.
- Our approach starts with the knowledge that capital is a commodity but ideas
are not. Using our industry, transactional and financial expertise, we develop
high-potential investment theses and identify specific opportunities.
- It continues with rigorous due diligence to craft tailored strategies for the financial and operational enhancement of a company.
- It is anchored by valuation discipline and the conservative use of leverage.
- It involves a willingness and ability to tackle complexity relating to tax, regulatory and financial structuring issues.
- It benefits from a rich network of industry veterans, including a team of operating directors, to identify companies, develop relationships, offer strategic input, join management teams and participate on boards.
- It is an approach that takes time and patience with the potential to last several years before an investment is made.
- It is collaborative and requires the trust and support of management teams.
- It is complemented by the firm’s deep expertise in energy, financial services, food and agriculture, healthcare services, insurance and medical devices.
- It results in building winning companies with strong growth prospects.
Results
We work with and listen to management teams to understand their operating and Strategy growth strategies, the opportunities and threats their businesses face and then develop capital structures to suit the strategy and business model. Our focus on operational flexibility and cash-on-cash returns typically leads us to employ less leverage than our peers while consistently delivering attractive risk-adjusted returns. Capital structure flexibility affords our portfolio companies the greatest opportunity to successfully execute their growth strategies. Additionally, we help management teams deploy capital in accretive investments. We have arranged or provided more than $4.5 billion of capital after initial investment for strategic add-on acquisitions.