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Alliances for Growth – For Whom?
Alliances for growth – Whom do we work for or with ?
We are frequently asked to specify whether we work for investors or entrepreneurs. Actually, we are challenged to determine whether we are a “buy” or a “sell,” which is the usual distinction between investors and intermediaries.
We no longer consider that distinction to be current, instead referring to practices from the twentieth century. It is also true that our targeted position as a provider of minority strategic growth capital places us in a hybrid situation.
In a world where ESG has become a must-have reference, it is tough to divide interests between “buy and sell,” and it is best to translate it into “investment” in beneficial developments.
Indeed, “alliances for growth” is our tagline. Working for one “camp” or the other seems weird in a rapidly changing global context where knowledge circulates rapidly, transparent communication is critical to improved governance, and much is interrelated through social networks and other means. We don’t have a camp. And we appreciate that this may strike some as a bold statement. It appeals to us.
The response is that we work for the betterment of the organization, the enterprise. By doing so, we care for all stakeholders, not just investors or entrepreneurs, but all stakeholders, including employees, clients or suppliers, and the larger community. It is widely acknowledged as the fundamental responsibility of members of governance bodies. This is our goal as strategic capital providers.
Let us not forget that TheClubDeal’s positioning also determines this stance. We do, in fact, fund scale-ups. As a result, we are frequently minority shareholders, even though we have reference rights for strategic choices. To be a minority shareholder providing growth capital is a condition precedent for working with the best management teams. Indeed, in a scaling-up phase, surrendering majority control would be premature and likely a symptom of management weakness. Naturally, the market will frequently set its terms. Building a proper foundation for an alliance of all stakeholders in the company’s well-being is thus a prerequisite.
TheClubDeal works for the benefit of all stakeholders of a company
While the ultimate criterion for determining success in the Private Equity field is the tangible and intangible value created, we have developed processes and live an attitude that allows the company to navigate through the phases and stay afloat while dynamically meeting the milestones, whether those metrics are to be (re)assessed in good or bad cycles.
This is why we’ve created methods to help with competitive mapping and strategy planning. These mechanisms, at the strategic governance level, enable management to confront upcoming difficulties, whether regulatory, competitive, or financial in nature.
We frequently state that we want incentives on both sides and insist on relative programs for operational management. We would rather share a larger cake with more people than keep the lion’s share of a smaller cake.
Finally, we unite for the greater and lesser good, which means we embrace the dangers and difficulties, at least when we operate in proactive transparency and the alignment of interests is felt throughout the alliance. Appropriate governance mechanics are required for this critical purpose, and they must be shared in a spirit of mutual trust.
We are constantly looking for allies who are willing to share our beliefs. We put in place practices that can help to promote positive attitudes on all sides of the table. We promote and facilitate transparency, and we appreciate working with all parties towards the success of the company.