Creative Private Equity Structures

The private equity team at Dreyfus Corporation builds bespoke private equity investment structures that go beyond the standard investment models that other firms might offer. Depending on the client’s business model and needs, we might structure an investment as:

A management buyout or recapitalization. Besides, bringing the capital that management needs to complete a particular business strategy, we consult with management teams to enable them to assume full ownership and control of the company and either to buy out existing investors or to refinance current debt. This structure may be attractive when some but not all company owners seek to exit the company to achieve diversity in their own portfolios, or where those owners seek to reduce but not eliminate their management involvement.
Add-on acquisitions. In certain situations, a company may be better able to add new lines of business or to expand existing business by acquiring other companies. Our private equity team works in partnership with management to identify potential acquisition targets. The ideal target provides excess returns with reduced costs or improved business opportunities with synergies and stronger presences in an industry or markets.
Consolidations and roll-ups. Fragmented industries can achieve real economies of scale when several smaller entities are consolidated under a single operational umbrella. In addition to bringing the financial resources that are required to complete a consolidation or roll-up, our private equity team has the knowledge and experience across multiple industry sectors to provide guidance and support to execute these transactions.
Operational turnarounds. One of the most challenging decisions that a company might make is to adopt a strategy that can salvage a flagging line of business or the entire company itself. Underperforming businesses and financially or operationally distressed companies can find themselves with few options but to restructure their businesses either in or out of court. Where the fundamentals of a business are sound, our private equity team can inject new ideas and strategies into the business to turn it around with the fewest disruptions or dislocations.
Divesting non-core or non-strategic assets can add capital and resources to seed new and more profitable business offerings. Our consultants can structure divestitures as aggregated transactions with infusions of private equity capital for further business development and expansion.
Public to private transactions. A strategy adopted by management teams at many micro-cap companies is to take the company private with open offers to buy out existing shareholders. Our consultants work with management to determine if the cost of public ownership (which, even for a small company, can be in a range of $1 to $2 million) exceeds benefits which such small firms derive from it.
Growth and development capital. A core competency that is facilitated by our partnership philosophy enables us to provides growth or development capital from private equity resources. Our advisors frequently assume a management role in these transactions
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