Our Firm

The main goal is to raise enterprise value by significantly enhancing and growing the companies we buy, top to bottom, from their productivity to their profitability. Our approach to doing this is complete, active and disciplined; from setting to exceeding key goals. Goals that are not only operational but also financial and competitive.

As a private equity 3.0 firm of operational leaders and industrial B2B insiders, we invest differently end-to-end. Meaning: more effectively than private equity 2.0 firms, generalist investors and other firms of our size that compete in this space.

Buying Because we know far more about the kinds of companies we're buying and about their growth potential, we're able to buy the right ones, at the right time and price. Often sourcing deals on a proprietary basis – before they get to the open market – working through an extensive network of C-suite relationships in our target industries, including many Fortune 100 decision-makers. Inside experience enables us to complete robust due diligence and assess pivotal business drivers better and faster than other firms relying solely or heavily on consultants.

Pre-acquisition we develop a Minus 100-Day Plan for operating and improving a business. From improving the cost structure and driving organic growth, to evaluating leadership and how to realize synergies with our other portfolio companies.

Operating In contrast to passive buyout portfolio managers, we're active macro-managers: operationally guiding and supporting portfolio company senior management as partners. Always striking a good balance, without micromanaging. Always leveraging our global network of relationships to open doors to new opportunities for our companies.

The engine of operational transformation is our Self-Funded Reinvestment (SFR) methodology, that touches each core business function, achieving dramatic cost reductions and efficiencies, and fueling organic (EBITDA) growth and enterprise value by reinvesting freed-up capital. It's a 360-degree loop we keep working around. When fully engaged, it creates enterprise value faster than traditional private equity approaches. Our team also makes sure the board and senior management have the right vision and skills to lead, grow and scale a business to its full potential.

Creating true enterprise value and competitive advantage through GenNx360’s Self-Funded Reinvestment (SFR) process.

We begin refocusing a company on the right issues and opportunities immediately, day one, with a Plus 100-Day Plan. A strategic and tactical plan that addresses key business imperatives, tests key assumptions and resets the operational rhythm and rigor. To further improve the business, we apply leading operating tools like Six Sigma, lean manufacturing — and our own Trotter Matrix that reveals key operational strengths and weaknesses.

Selling Knowing the industrial B2B landscape and its cycles so intimately enables us to identify and evaluate the right exit opportunities, timing and conditions. This process begins pre-acquisition. It also enables us to identify potential buyers, especially through our network of senior managers at leading and emerging global companies who are candidates themselves or lead us to them. Knowing what these buyers are looking for ahead of time is a further competitive advantage.

Being a great operating leader is important, because it assures future buyers they'll get a well-run business. Creating highly focused portfolio companies, including shedding non-strategic assets, matters, too, because it makes our companies more attractive overall propositions when it's time to sell. We also leave each portfolio company with clear upside earning potential for a next buyer/owner to realize, since it gives us the benefit of a higher exit price

We set exit triggers early on in our buying phase, and assess them continuously -- against market events, target returns and evolving portfolio dynamics. We scan our markets continuously, as well, to get benchmarks for mark-to-market valuations, and watch for favorable opportunities to exit or add more capital. And, we gauge the relative position of each portfolio company among its competitors as an ongoing part of our selling process.

Managing Risk Understanding more about the inner nature of our companies, and the rhythm, cycles and competition in our target industries enables us to avoid or minimize the most critical operational, financial, and compliance risks. We look at potential stress scenarios early on, from business slowdowns and regulatory compliance to capital structures and competitive pressures, then develop metrics to identify them, then strategies to minimize them.

Our risk analysis, management and monitoring begin in the sourcing phase, and continue at all levels throughout our involvement. We de-risk wherever possible, beginning with modestly leveraging the companies we buy. We also require added layers of ongoing strategic and financial reporting from our portfolio companies, supported by a designated GenNx360 analyst who works with each CEO and CFO.

Our entire Firm culture believes in rigorous compliance: always doing the right thing This and our private equity 3.0 mindset and business model position us to generate consistently higher investor returns with lower risk than all previous generation 2.0 firms competing in our space.

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