Allocating Capital to New Segments of the Market with Regenerative Investment Structures
Critiques are growing of traditional leveraged buyout (LBO) private equity and venture capital models. Average leverage levels in typical private equity investments are at historical highs – putting companies and their stakeholders, such as workers and investors, at risk. In venture capital, the “move fast and break things” and “blitzscaling” approach often does not align with principles and practices of long-term sustainable investing. And, as investors search for yield and diversification in evolving capital markets over the past few decades, they have piled into many of the same fund managers and opportunities – resulting in large sums of capital chasing the same few deals, driving up valuations, eroding returns, and potentially overlooking other private companies, as well as diverse founders, who are not well-suited for the LBO or VC models. These strategies are also problematic in less liquid markets.
This webinar explores more regenerative financing opportunities – such as revenue-based financing (RBF) and redeemable equity, which can be accessed through fund structures and produce strong risk-adjusted returns in the middle of (and potentially the higher end of) the risk-return spectrum, while meeting the financing needs of diverse and sustainable businesses across geographies. In this interactive dialogue, participants will hear from Aunnie Patton Power, Founder of the advisory firm, Intelligent Impact, and Associate Fellow at Oxford Saïd Business School. Aunnie will share key takeaways from her new book, Adventure Finance: How to Create a Funding Journey That Blends Profit & Purpose. The discussion will help investors – particularly institutional investors – learn about these emerging asset classes, their return profiles, payback periods, investment opportunities, and how they can reach new segments of the market that have been overlooked by traditional PE and VC strategies.
Aunnie’s new book is available at https://www.palgrave.com/gp/book/9783030724276