Secondary
Transactions
Solutions for Corporate Venture Programs
Many corporations are interested in modifying or
eliminating their strategic investment programs or
simply pruning their portfolios. These corporations
can create liquidity by selling all or part of their
holdings, particularly investments that are no
longer strategic, in a discreet and supportive way.
PEI's investment process in a purchase of
corporate venture interests is similar to that of
other secondary transactions. PEI purchases
corporate venture portfolios for cash. Corporate
venture transactions can be structured to provide
for an ongoing oversight role for a part or all of
the seller’s management team, as applicable.
PEI provides a variety of solutions for corporate
venture programs, including:
- Cash Purchase. The purchase of all
the remaining direct and/or fund interests in
the venture program for cash, providing instant
liquidity to the corporate seller.
- Purchase of Non-Strategic Holdings. This
approach enables a corporate seller to realize
non-strategic holdings and redeploy capital into
core initiatives.
- Restructuring. Occasionally it
becomes desirable for a corporation to
restructure its venture program due to mergers,
acquisitions, or other changing circumstances. A
restructuring could provide external funding to
support portfolio companies in order to preserve
value. PEI works closely with corporations and
managers of venture programs to create
innovative solutions.
If your corporation has a venture program and you
are interested in learning about liquidity
alternatives for all or part of your current venture
portfolio, please
contact one of PEI’s investment professionals today.
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