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Objectives•Screening
Criteria •Industry
Focus |
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Equity
Financing - We provide the equity financing needed to acquire a controlling
or significant interest in private companies or business units of public
companies. Under certain circumstances, we will acquire a large equity position
in publicly-traded companies. |
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Risk Profile - As equity investors, we are willing to accept reasonable
levels of risk. In exchange, we target an annual return on our investments
of around 25% - 35%. |
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Active Investors - We work hard to add value to the companies in
which we invest through our industry contacts and market knowledge and through
facilitating collaboration among GFI portfolio companies. |
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Exclusive Industry Focus - Because we invest exclusively in the energy
and power industry, we can often value potential investments more highly
and can make investment decisions more quickly and confidently than other
investors who are less familiar with the distinctive characteristics of
this industry. |
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Long-term Investors - We understand that the pace of value creation
is related to the timing of changes in the industry as a whole. We will
seek to liquidate our investment and realize our returns when market and
business conditions are optimal, not in response to arbitrary liquidity
deadlines. |
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Partnership with Management - We view the management of acquired
companies as our partners. We believe strongly in programs in which management
gains a significant equity position in the companies for which they are
responsible. |
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Auctions - We rarely participate in widely publicized company auctions.
We prefer to deal with principals of companies who are seeking a fair price
and who value confidentiality, discretion, expeditious decisions, and GFI's
strategic focus. |
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Leverage - We believe strongly in establishing and maintaining a
capital structure that facilitates long-term growth rather than maximizing
short-term leverage. |
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We seek to invest in companies which:
- Have sustainable
competitive advantages in attractive, growing markets
- Have annual revenues
of at least $50 million
- Have an enterprise
value of $50 million to $500 million
- Have an experienced,
well qualified management team in place, especially in key operational
and technical areas
- Control top distribution
channels in key markets
- Are motivated to
sell and able to reach a speedy decision on price and terms
- Are, or have the
potential to be, the dominant player in the markets they serve
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We will not consider investing in companies which:
- Have unproven technology
- Are start-ups or
turnaround situations
- Are outside of
our Industry Focus
- Have an equity
investment requirement of less than $30 million
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We are looking for companies in the following areas:
- Power Quality/Power
Conversion - Meeting the increasingly demanding and distinctive
power supply needs of industrial and commercial customers for whom the
form, quality, and availability of power is central to business operations.
- Energy Measurement
and Control - Measuring and managing the nature and amounts of energy
generated locally and consumed by end-users in ways that support increasingly
complex billing and energy management objectives.
- Transmission
and Distribution Optimization - Improving the efficiency and cost
effective management of energy transmission and distribution systems
and end-user energy-consuming equipment and operations.
- Information
Systems and Transaction Support - Providing the information and
transaction support needed in a competitive energy market from the perspectives
of electricity and natural gas suppliers, marketers, transporters, market
makers, consumers, and regulators.
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These four areas address issues and
needs in industries on which we focus: |
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| Responses
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| Power
Quality/Power Conversion |
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| Energy
Measurement and Control |
| Transmission
and Distribution Optimization |
| Information
Systems and Transaction Support |
| Issues
and Needs |
| Distribution
and Transmission Utilities |
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Multiple
power suppliers, transfers |
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Increasingly
demanding, fickle, and well organized customers |
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Pressures
to increase asset utilization as rates capped |
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Deteriorating
system-wide power quality |
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Inadequate
information to measure usage, track multiple transactions |
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New
technologies facilitate competition and physical and economic bypass |
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Fragmentation
of system operational control |
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| Industrial/Commercial
End Users |
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Proliferation
of power-sensitive equipment and systems |
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Declining
power quality and reliability |
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New
choices among competing energy suppliers |
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Time
sensitive services, prices |
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Integrated,
automated systems instead of stand-alone devices |
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End-use
equipment with adverse effects on power quality |
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New
information needs to manage energy consumptions |
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| Energy
Marketers, Brokers, Portfolio and Asset Managers |
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New,
large, complex market risks |
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Physical
generating assets bought and sold |
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Inadequate
information to measure usage, track multiple transactions |
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Supply
uncertainty |
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