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Exigen Capital co-invests through two primary deal types: Carve Outs and Large Capitalized Startups.
Carve Out deals create an independent business by carving out an existing cost center from an industry leader – including people, processes and systems. A joint venture is formed with the industry leader, who becomes a strategic co-investor and commits to a guaranteed long-term contract to buy the JV’s services. After formation of the joint venture, cost structures are optimized through Exigen Capital’s unique transformational capabilities. Standardized solutions and services are then created to be sold to the entire industry. Carve outs are designed to deliver immediate P&L and balance sheet benefits to the industry co-investor, while creating substantial exit potential in the form of operational cash flows for all investors.
Large Capitalized Startup deals build new businesses that provide technology-enabled services to address an industry-wide market disruption. Again a joint venture is formed with a strategic industry co-investor, who commits to a guaranteed long-term contract to buy the JV’s services. The joint venture startup then either re-defines an existing business process or builds operational capabilities to launch new products or services. Large capitalized startups are designed to significantly reduce the risks of building new capabilities.
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