Driven By Partnerships
The private equity advisors at Dreyfus Corporation only invest in operating companies that seek effective investment partnerships in which our resources and management expertise can enhance operations and add real value to the company. Our analysts do not limit their research to any specific industry sector or to development- or growth-stage companies but instead focus on businesses with sound management structures and expertise. Those businesses can be startups, well-established companies that are seeking to maintain relevance in a rapidly-changing business environment, or corporations looking to elevate their status to new levels.
We look for a company’s inherent value that might have been overlooked by more traditional private equity firms which limit their analyses to current finances. When that inherent value has not yet been fully reflected on a company’s balance sheet, we assign a higher valuation to the enterprise. This enables us to consider funding more challenging investment opportunities which, for example, might take longer to generate returns or to present a viable investment exit strategy. Our ideal private equity client is an underperforming business that has been unable to resolve strategic or operational challenges with its own internal finances and expertise, and that has a core group of seasoned and qualified managers that understand the value of our investment and involvement in management. We prefer managers who stay vested in the company’s long-term success with performance-based equity plans.
When Dreyfus Corporation invests in or makes recommendations to clients to invest in an operating company on a private equity level, we structure those investments to reflect a collaborative relationship with the company. We do more than just provide financial resources to an operating company. Our private equity advisors assume the role of a trusted resource for both strategic and operational management. We consult on and monitor short- and long-term operational plans, and work to add new structures and to enhance existing operations with a common goal of helping management to generate new and long-lasting value in the enterprise.
Within this context, we understand that a company’s management team needs to maintain its autonomy and its ability to make decisions without becoming bogged down in bureaucracy or limitations on decision power. Accordingly, our private equity investments are designed to foster a partnership-level relationship with management for the establishment of strategic goals and priorities. Management retains the full authority and responsibility for daily operational decisions. We believe that this partnership philosophy is the primary force that creates significant add-on value that our private equity team will seek.