As a result of the ever changing conditions on the availability of investment opportunities and the challenges of exiting, the operations of CVC units must be closely managed. CVC units often differentiate themselves by the value they add as operating partners to their portfolio companies.
Uniquely in Asia, Azione’s decades of entrepreneurial expertise makes us a highly sought partner for fund operations in this complex and multi-cultural region. Through our operational guidance, clients learn to better harness their extensive experience to provide strategic advice to portfolio companies.
At the beginning of the investment process, conducting due diligence on potential deals require much more effort and a uniquely-tailored approach. CVC units find success when located close to investment opportunities. Fostering close relationships with start-ups can lead to deeper levels of trust, especially due to the increased difficulty in establishing insider relationships with start-ups and their investors.
As many business transactions have strong roots in personal relationships, close physical presence to their portfolio is important in Asia too. CVC units must work to build and maintain local connections with influential officials, social groups, and businesses to successfully guide their investments.
Azione helps CVC units bring significant management experience to its portfolio companies and to be well-positioned to provide assistance in sales and marketing, human resources, financial structuring and management, strategic and financial planning, and raising capital. Importantly, our clients should work to leverage their networks as a source of customers, suppliers, strategic partners, and advisors to their companies.
Due to the comparable lack of IPO-friendly markets in Asia, Azione also works with clients to build exit routes through strategic sales or the selling of stock to their portfolio companies. Other possible routes developed include acquisitions by strategic buyers from outside the region, particularly through major corporations or through sales to later-stage funds.