speed
"AS A WOMAN-RUN
MANUFACTURER OF
INSTITUTIONAL LIGHTING
PRODUCTS, we chose ARK
CAPITAL AS OUR VENTURE
PARTNER FOR A NUMBER
OF UNIQUE REASONS. FIRST
IS THE quality OF ARK'S
INVESTORS. SECOND,
HAVING LOCAL informed
involvement FROM ARK,
MEANS A quick
reaction TO MARKET
OPPORTUNITIES AND
BUSINESS ISSUES."
Susan Larson,
Public Access Lighting
Portfolio
Management Philosophy
The
partners' expertise in private equity investing has led to the
understanding that portfolio companies need to develop unique operating
philosophies and implement key management tools in order to achieve
success. By ensuring that these companies are managed with the right
approach and the appropriate tools, management and investors can reduce
inherent financial and operating risks and achieve rapid and profitable
growth. Ark's active role with portfolio companies, from the inception of
the investments, helps management focus on those key tools that can
greatly improve a portfolio company's prospects.
Among the tools that
Ark and its portfolio companies jointly employ to increase the probability
of success are:
· Staged funding which allows a portfolio company
to take incremental risks while acquiring the necessary financing to
achieve key business objectives or milestones.
· An emphasis on
improving cash flows in companies acquired by the Fund.
· Goal setting
that allows portfolio companies to focus on meaningful objectives along
the critical path to a successful outcome for the investment.
·
Frequent communication between Ark and portfolio company management that
enables the partners to provide the advice and counsel necessary for
strategic decisions.
· Helping portfolio companies access Ark's network
of contacts and business resources.
· Focusing on management
performance and equity incentives to ensure positive motivation for
portfolio company management.
· Making appropriate growth versus
profitability trade-offs.
Our proactive involvement can often be a
catalyst for positive change or a vehicle for helping companies negotiate
adversity. Growing companies often face difficult issues such as choosing
between growth and profitability, selecting senior management, finding
financial partners and capital, identifying acquisition candidates,
suppliers and other resources needed to grow the business. Ark's role is
to assist portfolio companies in addressing these difficult strategic and
policy questions.