Investors use n+u to help under performing assets

Investors & lenders are more anxious these days. Long gone are the times of inexorably rising markets, when portfolio values grow without the need for too much intervention by investors. After all, a generally buoyant economy and rising capital market hid a “multitude of management sins” – which are now becoming much more visible.

nil plus ultra reports a dramatic increase in demand from investors and financial institutions to help them address issues related to this “multitude of sins”. Their distressed and underperforming assets are causing a significant drag on portfolio performance, and represent potentially nasty performance liabilities.

Graham Jackson, nil plus ultra Co-Founder, explains “This aspect has now taken off since Q4 2011, and is building rapidly early this year. Banks, Pension Funds and Private Equity firms are now acting to sort out many of the underperforming asset issues which have been bubbling under for a while now”. He added “no-one likes to interfere with local management unless they have to. The banks and funds are not really geared up to do this, so they are partnering with us to help them. They like the pragmatic, hands-on style, which delivers tangible business outcomes, rather than theoretical slide packs”.

Investors & lenders…want some confidence that the issues can be fixed, and a get well plan defined. No one throws good money after bad right now.

Co-Chair of nil plus ultra’s Supply Chain & Commercial Group, Steve Carter, commented “ideally we work collaboratively on performance improvements. It doesn’t need to be confrontational with management – on the contrary, you usually get to a win/win quite quickly. Of course, if obstruction to change persists, and the business owner or investor needs it, we can provide interim management at functional and C-levels alike”. Graham added “After having heard all the excuses and defensiveness, sometimes the investor just wants someone to go in and sort it out – and that is increasingly what we do on the investor’s behalf”.

With investors struggling to meet their portfolio capital growth aspirations due to distressed and underperforming businesses, many have turned to nil plus ultra to provide specific expertise and problem-solving management capacity. Steve Carter again: “Our Operational Reviews have now become very popular. Investors and lenders are sometimes even making such reviews mandatory before they consider further investment or lending rounds. They want some confidence that the issues can be fixed, and a get well plan defined. No one throws good money after bad right now. Management of the businesses are also keen, if not sometimes even desperate, for a helping hand”.

“Interestingly, the really smart management teams get ahead of the curve, and seek us out proactively to get qualified, insightful, independent reviews. This puts them on the front foot” – Steve Carter

Explore any of the links below for related topics: