Most of the companies in manufacturing and such other industries in US and Europe are facing a problem of stagnant growth or negative growth leading to a huge pool of distressed companies. ALCOR’s Buyout fund, proposes to acquire these distressed assets and restructure their operations, by merging them or partnering with Indian companies to leverage India’s cost competitive manufacturing capabilities and high growth market, thereby adding topline sales growth above 50% and bottom-line EBITDA growth by 8%+
The objective of the Fund is to attain capital appreciation and maximize returns over an investment horizon of 3-5 years by investing in companies and expose only to systematic and controllable risks. The Fund will target an annualized internal rate of return of not less than 20%, net of all fees and the General Partner's carried forward interest. We target to achieve a return of a minimum 5x the invested capital.
Investment Strategy and Criteria
Management selection & Value Creation
- Support/installed seasoned management teams supported by industry operating partner
- Incentivize management through equity participating options
- Introduction of high performance management to sustain ‘Planned Growth’
- Seek to acquire control of underperforming/ overlooked/ distressed companies at below market multiples.
- Conservative capital structures- low leverage
- Lower risk because purchase price is near asset value
Execution & Growth
- Leverage global capabilities to lower their cost structures
- Access new revenue streams in fast growing international markets
- Become global leaders in their respective industry sectors