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In my experience being the lead advisor on many deals.
I believe that #Joint Ventures #JVs Special Purpose Vehicles #SPVs and Public Private Partnerships #P3s need to be rooted in 4 basic principles:
• The common or shared goal,
• The economics of the partnership,
• How it will be managed and governed (especially shared success fees) and
• Agreeing an end state (transfer and exit)
The rest of the stuff is noise.
JVs in #REITs and #CRE should be no different.
Message me if you need some advice.
https://lnkd.in/eFTJk5Cs
Authentic Auto Body is on the brink of becoming a multi-shop operation (MSO) with its second acquisition set to close soon.
Backed by Envest Private Equity, the Massachusetts-based shop has grown from a single-owner operation to a $6 million enterprise under the leadership of Steve Proia. This move signals the beginning of a growth strategy aimed at reshaping the collision repair market.
#AutoBody#MSO#CollisionRepair#AutoRepair#BusinessGrowth#PrivateEquity#MassachusettsBusiness
Government Contracting Segment Lead Partner at Aprio: Maximizing Value and Minimizing Risks of Government Contractors through innovative audit, tax and advisory solutions. ( Aronson merged with Aprio 1/1/23)
Check out Aprio GovCon's Julia Coon insights on GSA , MAS and JVs. Joint ventures are not part of everyone's plan, but if it is part of yours this is an important read.
I got screwed investing into an RUV - and it was entirely my fault!
Sharing a segment of yesterdays guest post from Jenny Fielding via Last Money In Media.
"Be careful investing into RUVs. I had a bad experience, here's what happened...
I’ve been a long time investor and manager of Special Purpose Vehicles (SPVs) and a fan of the structure and access that they can provide. As an #angel, I’ve been able to invest into amazing pre-IPO companies that I never would have had direct access to and as part of Everywhere Ventures, we can keep our fund size small by sharing our follow-on pro-rata with other investors via our syndicate.
When I first learned about Roll-Up Vehicles (RUVs), I was excited to see the same level of convenience, ease and access that I experienced investing in and managing SPVs extended to founders.
How it works is that founders get their own private SPV that allows up to 250 accredited investors (think small angels, operators, micro-funds) to invest into one vehicle that takes up just one line-item on the cap table. Founders don't need to worry about hiring lawyers for the RUV formation, tracking down investor accreditation, KYC or dealing with signatures and wires - that's all part of the RUV package.
However, an often overlooked issue is that a manager of an SPV or RUV, has a fiduciary responsibility to the members of that vehicle. They need to make decisions on their behalf and often there are conflicting agendas where they need to be both a fiduciary to the members of the RUV as well as to the company itself - and there are times where those groups are not aligned.
The most obvious misalignment is around pro-rata rights. Here’s the situation that I recently found myself in…
I was a small investor in an RUV administered by a founder of a company. The RUV included pro-rata rights. A year later, as a competitive Seed round came together, there just wasn’t enough allocation for every investor that wanted to invest. So instead of honoring the RUV’s pro-rata rights, the founder waived those rights as he was entitled to do as manager of the RUV. The founder never consulted with any of the investors in the RUV and stopped responding when we (and other pre-seed investors) tried to contact him to discuss.
I was extremely disappointed in the founder for breaching his fiduciary duty to the members of the RUV and angry that he’d treat his first believers that way. Ultimately, I was most annoyed at myself for not educating myself properly on the mechanics of the RUV.
And pro-rata rights are the tip of the iceberg - in future rounds, the founder could make other decisions on behalf of the RUV around pay-to-plays and other follow-on scenarios.
The bottom line is that I learned a hard lesson, it was a wake-up call to get up to speed about any new investment vehicle structure and do your own thorough research."
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Many friends want to understand in detail how investors can use Jarsy to invest in pre-IPO companies that are not traded on the public market. Jarsy accomplishes this through a tool called Special Purpose Vehicles (SPV). We have compiled all the knowledge related to SPVs into a very detailed blog post. It thoroughly explains what an SPV is, the typical legal structure of an SPV, the typical process of participating in a traditional SPV, the innovations brought by SPVs, the shortcomings of traditional SPVs, and how Jarsy addresses these shortcomings. We hope this educational content can help those who want to understand and participate in early or pre-IPO company investments through SPVs.
https://lnkd.in/g-59tVJQ
At Jarsy, we are committed to providing not only exceptional products and investment opportunities but also empowering our users with valuable knowledge. Our detailed blog post delves into how investors can use Jarsy to invest in pre-IPO companies through Special Purpose Vehicles (SPVs).
Discover:
- What SPVs are
- The typical legal structure of an SPV
- The process of participating in a traditional SPV
- Innovations brought by SPVs
- Shortcomings of traditional SPVs
- How Jarsy addresses these shortcomings
We believe in growing together with our community. Dive in to learn more and take your investment journey to the next level! 🚀📚
Many friends want to understand in detail how investors can use Jarsy to invest in pre-IPO companies that are not traded on the public market. Jarsy accomplishes this through a tool called Special Purpose Vehicles (SPV). We have compiled all the knowledge related to SPVs into a very detailed blog post. It thoroughly explains what an SPV is, the typical legal structure of an SPV, the typical process of participating in a traditional SPV, the innovations brought by SPVs, the shortcomings of traditional SPVs, and how Jarsy addresses these shortcomings. We hope this educational content can help those who want to understand and participate in early or pre-IPO company investments through SPVs.
https://lnkd.in/g-59tVJQ
At invygo, we believe in challenging the status quo of car ownership. Our journey has been one of relentless innovation, resilience, and a commitment to changing how people experience mobility. Today, I’m thrilled to share a major milestone in that journey: we have raised an $8 million Series A extension to accelerate our path to profitability.
But let’s be clear—this isn’t just about raising funds. It’s about creating a future where accessing a car is as seamless as subscribing to your favorite service, where flexibility meets affordability. We’ve listened, learned, and acted. Our partners, team, and customers have been at the heart of this mission, and this investment is a testament to their belief in us.
Profitability isn’t just a goal; it’s a promise to our stakeholders, to ourselves, and to the future of car subscriptions in the region. We’re not here to follow the norm but to set a new standard.
Thank you to our investors, partners, and the dedicated Invygo team who made this possible.
Pulkit G. , Khalid AlKhudairi, Shyam Balu, Saulo Marti, Dunja Poetschke, CMA, Mahmoud Saied, Rab H., HASAN JABARTI, Waleed Fareed
#Invygo#MobilityReimagined#SeriesA#Innovation
We are proud to announce our latest Series A extension round securing an $8 million investment, led by our latest investors STV, along with our existing investors; Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, C5 and Palm Drive, as we near profitability.
As invygo surpassed a $100 million in annualised GMV, we continue to challenge both traditional car ownership and traditional funding models, and continue to carve a unique path in the rapidly evolving mobility sector.
https://lnkd.in/dfVDpwn9STVAlRajhi PartnersArab BankSignal Peak VenturesMiddle East Venture Partners (MEVP)Class 5 GlobalPalm Drive Capital
This short video for Khaitan & Co deals with deadlocks and few options to consider for resolving them in JVs
#jointventures#deadlocks
https://youzMigLjcMZgA?feature=shared
Modella Capital's Hobbycraft Pursuit: A Microcosm of PE Exit Challenges
Mark Kleinman reports the potential acquisition of Hobbycraft by Modella Capital is more than just a single deal; it’s a stark reflection of the complexities and challenges private equity firms face when exiting their investments.
Bridgepoint acquired Hobbycraft for more than £100m in 2010, is likely seeking a lucrative exit . The LPs from Bridgepoint Europe IV a 2008 vintage fund will be expecting returns. However, the choice of Modella Capital as a potential buyer is intriguing. The firm's association with Rcapital known for its involvement in turnaround situations, suggests a potential underlying issue at Hobbycraft.
The retail sector, particularly in the wake of the pandemic and rising economic pressures, has been a challenging environment. While Hobbycraft has managed to weather the storm, it’s possible that Bridgepoint believes its growth potential under current ownership has plateaued. A sale to Modella could signal a need for operational improvements or cost reductions.
Modella’s portfolio, including the troubled No Ordinary Designer Label, which managed the Ted Baker stores that fell into administration in March, raises questions about its ability to successfully turn around a larger, more complex business like Hobbycraft. The firm’s focus on licensing and fashion suggests a potential mismatch in expertise.
Moreover, the deal highlights the broader challenges facing private equity in Europe. The region's economic climate has been more volatile than the US, making exits more difficult. The search for buyers with the financial firepower and industry expertise to support ambitious growth plans has become increasingly arduous.
If the deal proceeds, it will be closely watched by the wider private equity community. Will Modella be able to unlock Hobbycraft’s potential and deliver a satisfactory return? Or will this transaction become another cautionary tale about the risks of investing in retail and the complexities of exiting such investments?
The outcome of this deal will undoubtedly shape the perception of European private equity and its ability to navigate the evolving retail landscape.
Ultimately, the Hobbycraft deal is a microcosm of the broader challenges facing the private equity industry in Europe. As economic conditions continue to fluctuate and consumer behavior evolves, the ability to identify and execute successful exits will be a critical test of investors’ acumen.
