What We Do
Most companies will face obstacles on their path to success. Ironwood Capital Partners offers the capital, experience, and insight needed to help you recognize and overcome these challenges. Once invested, we aim to provide valuable advice to our portfolio companies.
How can Ironwood Capital Partners help unlock the maximum growth potential of your company?
Capital for investment
Articulated strategy and planning
Analyses and information systems
Access to vital international networks
By the Numbers
COMPANIES INVESTED IN
Private Equity entails the investing of investor funds in the shareholding of private businesses. These investments are typically for meaningful minority stakes, and in some cases may even be for majority controlling stakes. Private placements in listed companies will also fall in to the category of Private Equity investing. Investments are typically made via a fund, which has been capitalized by a series of investors (the Limited Partners or ‘LPs’) such as High Net Worth Individuals, Family Offices, Corporates, and Financial Institutions. Private Equity investors invest for the long-term, and their interests are represented and looked after in the invested firm by a Private Equity Fund Manager (the General Partner or ‘GP’).
Certainly, there are situations where debt in the form of bank debt or public debentures is warranted, be it for working capital or expansion. Banks will be only too keen to lend where there is some level of positive operating cashflow and/or collateral. However, in situations where there exists strong growth potential and opportunity for a firm, and where firms have to invest in projects, expansion, acquisitions, brand-building, marketing, or other areas to realise this potential and opportunity, comes with it certain risks. Financing these efforts through equity (as opposed to debt) decreases overall volatility and risks associated with this growth – a simple logic that is often lost due to the ready availability of debt.
Sri Lanka is at the threshold of a growth trajectory that it has probably not experienced since independence. While in the past, traditional forms of funding from debt to retained earnings were adequate to meet the growth aspirations and opportunities, in the current scenario, supplementary forms of funding will be required. Private Equity presents the avenue through which entrepreneurs can a) achieve these growth ambitions, and b) accelerate its achievement in an environment of increasing internal and external competition. In short, Private Equity will help entrepreneurs achieve a greater value to their shareholding, in a shorter time frame, with less risk associated with it.
Firstly, we are long-term growth partners who seek to build strong, trust-based relationships with Sri Lankan entrepreneurs. We have our own personal capital invested alongside our investors; hence, we stay with you throughout the entire journey of the investment, unlike a number of institutional Private Equity funds which are staffed by professionals who are only employees. In other words, our interests are perfectly aligned with yours, and our commitment to your success is well intertwined with our own.
Secondly, our passion is to deploy capital and employ our skills and expertise to grow portfolio companies beyond the trajectories of its usual growth and overcome inherent limitations, both strategically and operationally. Ironwood Capital Partners will act as source of fresh perspectives and thought-provoking insights to drive high-growth decision making. We have access to a vast global pool of knowledge, and industry experts and business partners which will be optimally leveraged to provide the best possible guidance and value enhancement to your company. These could range from access to technical expertise to new markets and distribution channels, to sourcing internationally experienced senior management.
By investing in significant minority stakes in portfolio companies, we commit ourselves to drive long term growth and benefit from that. The Investment professionals at Ironwood have many years of investment, transaction and consulting expertise across various sectors, globally and regionally. This will be combined at every stage of our engagement to create value for your company as well as our investors.
We will engage with you primarily at the level of the Board of Directors. As significant minority shareholders, we will expect board representation commensurate to our shareholding and we will enter into a Shareholders Agreement with you that will govern our relationship. One or more of our Partners will represent us and our investors on your board, and all of our Partners will be keen to engage with your business in a non-executive capacity. In particular, and in addition to the value brought about by our networks, we will seek to engage with you to arrive at better informed business decisions underpinned by strong analytics and data, and help you implement, project-manage, and monitor the changes you envisage.