A Rational Approach to Private Equity Investments
When a potential investment partner approaches Dreyfus Corporation with specific capital requirements, we analyze not only those requirements but also the potential partner’s complete growth and expansion plans and prospects. A private equity investment should do more than provide a comfortable operating cushion. It should also accommodate fluctuations in company performance and in external forces that might drive the company away from its strategic goals. The investment proposal that is part of our response will reflect the combined results of our analysis and the company's estimates of its financing needs.
The private equity industry has faced criticisms for structures that load companies with debt that can adversely affect long-term growth. Dreyfus Corporation structures private equity investments in a variety of different ways that are more than just debt financing. Depending on the company's needs and our analysis of its operations, we might structure an investment to shift control, to recapitalize debt with management-backed initiatives, to participate in industry consolidations, or to be part of consolidated accounting with minority equity investments.
Dreyfus Corporation maintains a large private equity investment team that provides rapid responses to requests with full confidentiality in any industry. The consolidated experience of our team and the financial resources that we can bring into any private equity arena give us the ability to close private equity investments within thirty days or less after terms sheets are agreed upon.
Business owners who have devoted their lives to building and growing a company are often loath to cede control in it, even if transferring control provides maximum liquidity and the best private equity opportunity. Our partnership investment approach gives owners the chance to retain a meaningful equity interest and management role in the company. Likewise, we can structure private equity investments to continue the participation of key employees or family members in a growing business.Our partnership approach also helps business owners to identify lines of business that may be ripe for divestiture, which allows management to focus on its core competency that adds true value to the company. We can help a private equity client to complete a divestiture without disrupting existing core operations or any part of the company’s management or workforce.