JFL Equity Investors VI, L.P Recommendation Report
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Hamilton Lane
JFL targets majority ownership where it can employ value-add initiatives to drive portfolio company growth
The General Partner outlines opportunities for value creation throughout its due diligence, with a focus on initiatives geared
towards solving operational complexity
The General Partner contributes to value creation in its portfolio by leveraging its investment deal teams, dedicated operations
professionals and Operating Executive Board members
Value creation initiatives are further supplemented with add-on acquisition activity
Areas of Focus
Owner-Founder Dynamics
Corporate Carve-Outs
Market Dynamics
Partial C-Level Suites
Complex Trajectories
Lack of Business-Development Engines
Insufficient Systems & Processes
Investment Strategy (cont.)
Value Creation
February 2023 | Proprietary and Confidential
Value Creation Initiatives
• Complex owner-founder transitions
• Insufficient depth of management talent
• Multiple operating units loosely packaged for sale
• Limited historical financial information/cash flow visibility
• Often more reliant on existing parent infrastructure than seller appreciates
• Insufficient depth of leadership
• Unique technologies, programs, customers and regulatory environments
News headlines and historical trends often misleading
• Missing critical members of the executive team
• Divestiture often a graceful exit ramp for underperformers
• Dynamic contract profiles and other company-specific complexities
• Requires conviction beyond near-term contraction in financial performance
. Broken balance sheet
Selling ownership often more focused on existing contract execution over growth
• Limited appetite for risk, even with attractive risk-adjusted returns
• Often yields unexciting projections
• Lack of clear organizational and reporting structure
• Limited systems and consistent, uniform business processes
• Poor data fidelity hinders due diligence
Executive Summary | General Partner | Investment Strategy | Track Record | ESG | Appendices
JFL Equity Investors VI, L.P. | Page 16View entire presentation