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 or in a structured solution. 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 some or 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 divest 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.