Exigen Capital believes that in the current economic climate superior total returns can be achieved through operational transformation. We invest in partnership with Global 2000 companies to unlock the value of their essential but non-differentiating operational functions, by converting these functions into independent, profitable businesses. This approach combines operational transformation (to reduce unit cost) with scale (to accelerate revenue and margin).
In current economic conditions, we consider pricing investments based on market multiples to be risky. Instead we price investments based on expected returns in the form of dividends from operating cash flows. We apply proprietary transformation and governance strategies at all stages of our investments. These include proprietary due diligence to assess whether target returns can be achieved through managing operational execution risks, proprietary transformation methodologies based on supply chain optimization, and outcome-based agreements to properly allocate risk and underpin optimal returns.
Finally, we believe that a transformational investment strategy requires not only investment expertise, but also experience in operational transformation and company building. Therefore we have assembled a team of Partners with experience as entrepreneurs, CEOs, and other C-level operating executives, as well as value added investors.
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