Why Maximus Value Capital Partners?
A significant portion of private equity’s historical outperformance came from buying high growth companies at low valuations in private markets, cutting their fat by discontinuing unprofitable operations, providing access to cheaper capital and other financial engineering, then selling the juicy, profitable portions at a higher valuation through an IPO on the stock market or for slower growth companies via sales to strategic buyers or other private equity firms. This valuation arbitrage worked as long as private equity could buy companies at a discount to the stock market. Prior to 2006, US private equity firms enjoyed a 30%+ valuation discount on their purchases, relative to public markets even when buying high growth businesses. But that valuation gap has since closed as investors have poured more money into private equity, chasing the handsome returns from PE’s gilded age in the 1990s and 1980s. Or to be clear, PE funds made most of their money when they bought their targets, and the rest was relatively easy, following a formula of making significant, but nearly standard improvements to these targets.
In todays market, it is still possible to find highly undervalued deals, but most of these do not have the high growth kicker required for these companies to be taken public without significant changes and improvements, and without a lot of hard work, a significant set of unique skills and collaboration between multiple players and strategies.
That is where Maximus Value Capital Partners comes in. Over the years, we have created and have honed a formula, by combining a number of skill sets and strategies managed by a number of teams, each skilled in their own arena of expertise.
From understanding how to identify and to lead companies into successful IPOs, to understanding how to find targets at a significant discount, and to create or to acquire the growth spurt needed to place our company above its competition. We understand how to identify, how to acquire and how to merge multiple bolt on acquisitions to deliver significant growth both in revenues and in EBITDA and how to do this for less. We understand the value of strategic partnerships with enterprises and and the value of public / private partnerships and the difference that low cost capital in the forms of contracts, earmarks and other similar sources can deliver. We have many years of boots on the ground experience in the world of global arbitrage, acquiring and transferring companies and value from lower priced jurisdiction such as India, South East Asia, Latin America and Eastern Europe and merging this value into US and Western European based companies.
We have developed a sophisticated set of platforms and deep data analytical expertise, to build and to test sophisticated models on each set of transactions, helping us predict favorable outcomes and combinations, and to identify scenarios that our competitors simply miss, and we have the relationships with partner PE and VC firms, with leading corporates and government agencies, and with various other sources of deals, and partner capital and resources to make our transaction more favorable, allowing us to deliver above average returns, where others are struggling to find deals, still expecting that they can continue doing business as usual, in the way they have done it in the 1980s, 1990s and before 2010s, while being surprised as to why they can not deliver similar results in this new economy, as to what other progressive firms like MVC Capital have been able to deliver.