Our Services

 

Private Equity

Our private equity specialists provide integrated solutions to challenges at every level of your business, from deal strategy through value capture. In this market, private equity firms need a cash culture and an integrated plan for managing funds, improving portfolio company performance and ensuring flawless transactions. This area of our business offers you a broad selection of domestic and regional funds as well as index-linked and unconstrained products. Our experience and network gives us easy access to business leaders throughout every region. We invest in highly profitable, leading companies that can create value for you as our client. For the active funds, our goal is to achieve a high risk-adjusted return over the long term. We aim to make sure you as a client profit, above the management fees for the funds.

 Each of our equity teams has a specialised approach for their particular area. However, all possess a thorough understanding of the value-drivers and the operational risks of the companies in which we invest. This is the foundation upon which we base all decisions. Our teams have the advantage of a broad network among the companies in which we invest. Our experience and network provide us with the invaluable asset of easy access to business leaders. We have Equities teams in several geographic markets. We work closely with you through the full life-cycle of the private equity continuum. From deal to deal, strategy through execution, Riffa Investment Company can connect you to the right resources, at the right time, ensuring success at each stage of your valuation transaction. A private equity fund values companies on the basis of a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

 To assist you with the basics of most private equity deals, let's use a "three layer cake" analogy consisting of senior debt, mezzanine debt, and private equity. This structure is the most commonly used in private equity investment. This structure is generally used in a leveraged buy-out or a change in control transaction because it allows the private equity fund to leverage his down payment to purchase the target company. As you will see, each layer is different and has its own unique characteristics and each layer has its own risk/reward profile. Through understanding the basic rules and structuring technology, we are able to help business owners design optimized structures that meet their needs, as opposed to the needs of the private equity investor. Instead of using the traditional three-layer cake structure that can be expensive and complicated, Riffa Investment Company has created a streamlined, two-layer cake structure. This structure provides flexible, long-term capital at a significant discount to the 3-layer cake structure. It allows us to provide our clients flexible long-term capital for growth, without having to sell their company to a private equity fund.