Private Equity Mitigating Investment Risk

Private Equity and Venture Capital investments helps investee companies grow, however investing is inherently risky. Unlike Public Market investment where financial information is readily available, buy-side firms invest into non-quoted companies. Companies House is a source of financial insight into a company but not a complete picture.

Having worked in Investment Banking over two decades, our directors advised on Merger & Acquisitions and represented buy-side clients. We understand Private Equity and Venture Capital investment and associated financial performance of portfolio companies are exposed to risk beyond investors control. Comparable analysis (Comps) and discounted cash flow (DCF) forecasting help provide insight into potential future financial performance, but what is the financial risk to a business and investment if a Key Person or Shareholder became medically incapacitated or died?

No Obligation Consultation
Business Loan Insurance
Businessman and client

The Value of People and Investments

James Autry said: “There is no business, there are only people. Businesses exist only among people and for people”. Like James Autry, Fatgreen believe people are the most important assets for businesses. People build businesses, generate ideas, provide direction, create corporate culture and take dreams from inception to reality.

Given the value people impart on business growth, can there be a justification for not protecting your business and associated investment from the financial risk associated with loosing a Key Person or Shareholder following medical incapacitation or loss.

No Obligation Consultation

The Cost of People and Investments

Just as professional investors use Comps and DCF methodology to calculate companies projected valuations, Fatgreen use similar financial methodologies to calculate the financial impact to investments and companies following the loss of a Key Person or Shareholder.

Our methodology includes analysis of company earnings and cash-flow forecasts to calculate the financial value that Key People contribute. Using similar financial methodology, Fatgreen can also calculate the value of Shareholders stock and the cost shareholders would incur if required to buy-back shares from a deceased shareholder.

Factored into our analysis are variable factors including time and cost of replacing a Key Person. Twenty years in Executive Search securing talent for Investment Banks, Private Equity firms and their portfolio companies taught us that replacing people can be fraught with challenges and incur significant cost.

No Obligation Consultation
Investors

What is the Optimum Level of Investment Protection

Once we have calculated the financial cost associated with losing a Key Person or Shareholder to your business and investment Fatgreen can start to help you mitigate the financial risk.

We mitigate your financial risk by arranging Key Man or Shareholder Protection solution. Adoption of our rigorous financial discipline enables Fatgreen to arrange an “optimal” level of cover at a cost-effective priced point.

Once covered, you receive peace of mind that your portfolio company and investment are protected from the financial loss associated with medical incapacitation or death of a Key Person or Shareholder.

No Obligation Consultation
Investors
Businessman and client

2021 in Review

2021 was a bumper year for Mergers and Acquisitions (M&A), Private Equity and IPO’s.

Across the mid-market, Private Equity activity increased by 40% on 2020 which in turn fuelled demand for M&A. During the same period, the UK IPO market witnessed the largest number of IPO’s since 2007.

Whilst deal volumes increased across every sector, investment into TMT and Business Service sectors accounted for over 50% of transactions.

Drivers of growth included anticipated changes in Capital Gains Tax (CGT), a return of confidence as the UK emerged from Covid and enhanced liquidity in the economy.

No Obligation Consultation

What Our Clients Say

eBook Cover

    Brochure Download

    Please enter your name and email to access our company eBrochure.

    Please view our Privacy Policy for more information on how we use your data

    Tick this box if you want your details to be stored on our database, which may then be used for marketing purposes.

    nick green

    peter@fatgreen.co.uk

    0333 050 0088

    07866 751 415

    Connect with Peter on LinkedIn

    Peter Blacklock
    Peter is one of the UK’s leading Insurance and business advisory specialists with a track record of building and selling Insurance businesses.

    He advises boards and investors in the capacity of CEO, C.A.P.O.W. Consulting, drawing on three decades of experience. Peter’s knowledge of Insurance is unrivalled having had extensive exposure to personal, family and business protection insurance.

    Peter is passionate about the North of England and a life-long Sunderland fan and sports coach.

    nick green

    Anny Lian

    anny@fatgreen.co.uk

    0333 050 0088

    07908 355 781

    Connect with Anny on LinkedIn

    Anny was an Investment Banker and CFO of a high-growth company working across Asia, America and now Yorkshire.

    With a background in Finance, Anny understands the importance of protecting investments whilst ensuring company finances are insured against life’s unforeseen challenges.

    As an active member of the UK SME sector, Anny accepts invitations to encourage and mentor aspiring future female business leaders.

    nick green

    Nick Green

    nick@fatgreen.co.uk

    0333 050 0088

    07985 219 763

    Connect with Nick on LinkedIn

    At heart, Nick is an entrepreneur who has co-founded two companies, including Fatgreen. Fatgreen arrange Business Protection insurance solutions for SMEs, Private Equity and Venture Capital Investors.

    Prior to co-founding Fatgreen, Nick spent two decades in Executive Search, providing recruitment solutions for Investment Banks, Private Equity firms and their portfolio companies. Having dealt with people all his career, he understands the intrinsic link between creating financial value and people.

    Nick appreciates how hard it is to appoint exceptional talent, hence the need to reward staff through enhanced benefits such as Relevant Life Insurance. As life is uncertain, Nick is passionate about protecting companies from the financial costs associated with losing a Shareholder or Key Person.

      Contact me regarding... Private Equity

      Tick this box if you want your details to be stored on our database, which may then be used for marketing purposes.

      Fields marked with an * are required.

      For more details on how we handle your data, please view our Privacy Policy

        Contact Us Today

        Tick this box if you want your details to be stored on our database, which may then be used for marketing purposes.

        Fields marked with an * are required.

        For more details on how we handle your data, please view our Privacy Policy