As a compensation for its fundraising activities, Balmoral will participate in the ownership of the company, including:
Private companies, divisions or subsidiaries of public or private companies. Public companies through recapitalizations or private transactions. Significant blocks of stock from public or private companies seeking equity capital or persons seeking liquidity.
Balmoral structures each transaction, negotiates with the seller and its advisors and arranges the required financing. Acting as a principal, Balmoral invests its own funds and those of institutional investors through investment partnerships, which it manages. Equity participants in these transactions normally include company management, employees (through an equity incentive plan), Balmoral and its investment partnerships.
Balmoral monitors the performance of its portfolio companies through frequent communication with management and regular analysis of monthly financial and operating results.
Balmoral is represented on the board of directors and usually has control through substantial ownership. Balmoral typically does not get involved with daytoday management of its portfolio companies, but does provide advice regarding certain financial matters, including the evaluation and implications of acquisition and divestiture opportunities, strategic and longterm planning, and potential refinancing options.
Balmoral is a longterm investor, typically retaining its equity ownership on an average of over five years . Ownership values are realized by a number of different exit strategies including:
- Public stock offering.
- Sale back to the company.
- Sale to a financial buyer.
- Sale to a corporate buyer.