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| Company |
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Private Investment Funds investment portfolio of forty companies
in Southeast Asia, China and Japan in a wide variety of industries
ranging from high-tech startups to established branded consumer
products companies |
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| Background |
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The fund management company was raising capital for a follow-on
fund and needed an independent assessment of the value and performance
of the companies in the existing investment portfolio. Investors
wanted an indication that prior fund investments were performing
well before committing to the new fund. |
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| Issues |
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Required a very quick completion of the valuation
analysis |
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Several logistical challenges in gathering information and
visiting the subject companies overseas |
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Company information was not always
readily available or clearly communicated |
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| D&P's Role |
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Met with fund managers and select
company management in Asia |
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Analyzed pricing of foreign and
U.S. public comparable companies and transactions |
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Scrutinized business plans and projections
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Determined fair market value of
the fund's interests |
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Communicated results in a concise
and complete manner |
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| Results |
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Client successfully closed the $750
million fund due in part to our thorough and timely analysis
of the performance of the predecessor fund |
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Our due diligence
and analysis highlighted a number of key issues for the fund
managers (for example, a retail company's plan significantly
underestimated the capital expenditures for new stores, in Duff & Phelps' opinion. With this knowledge, the fund manager reduced
its capital commitment and required the company to dramatically
reduce the number of planned store additions). |
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Pleased with our
responsiveness and the quality of our work, the client regularly
hires Duff & Phelps for valuation updates. |
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| Essentials |
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Commitment to completeness and quality
for each of the forty companies valued |
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Project team included many highly
experienced professionals |
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Creativity in analysis and reporting |
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Able to work with global companies
and foreign financial statements in a wide variety of industries
and quickly grasp the key issues |
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