Much is spoken about private equity and financial sponsors making minority investments, but very little is known about the other way around – when firms or other funds acquire interests in financial sponsor portfolios. I had participated in such deals and summarize my general thoughts in this deck. I discuss the rationale, structuring considerations, the types of securities will have impact on ownership, governance and pricing. I talk about governance conditions and willingness to accommodate minority investor’s requests, liquidity and exit considerations along with pathways to exit. I also provide examples of transaction diagrams for visual clarity. I conclude by highlighting timing considerations and typical process followed.
As always the devil lies in the detail. If you are considering making one such investment and need help do contact me.