value creation proposition that will ensure out-sized financial returns for the fund's investors. In
addition to institutional and individual investors in the fund, a significant portion of the capital
for transactions always comes from the Pegasus team itself.
The key elements of this strategy are detailed below:
INDUSTRY AND COMPANY FOCUS
Pegasus makes private equity, growth equity and venture investments in attractive, growing
markets where the Pegasus team has a proven track record. Pegasus seeks out companies with
a proven business model that are looking for "smart capital" to provide the strategic vision and
financial assistance to take the business to the next level. Pegasus' competitive edge is derived
from our ability to identify businesses where we can create significant value through new ideas,
increased revenues and improved operations. Areas of particular focus for Pegasus are
service-oriented companies in a variety of industries, including healthcare, aerospace and
defense, media and entertainment, and consumer products.
INVESTMENT CRITERIA
Pegasus seeks control positions in growth stage small to medium size businesses. Pegasus
evaluates investment opportunities against a balanced scorecard of business, industry and
financial considerations, including:
- Competitive, proven business model, positioned strategically within an industry poised
for growth and/or change
- Compelling long-term growth profile with a specific value proposition
- Sound, achievable financial plan
- Excellent, motivated and highly ethical management
- Strong fit with Pegasus strengths ensuring ability for Pegasus to add value to create
out-sized returns
With an investment process relying on the above investment criteria, extensive due diligence
and thoughtful execution, Pegasus' founder, Paul Parmar, has been carefully identifying
successful strategic opportunities for several years. Institutional and individual investors alike
benefit from this proven Pegasus approach without investing the time and effort themselves
and with the added comfort that significant amounts of capital from the Pegasus team is
invested in each transaction.
DEAL SOURCING
We utilize our extensive global network of business relationships to generate attractive,
proprietary deal flow. We distinguish ourselves by identifying investment opportunities in
companies with unique, but unrealized products and services that can create significant value.
RELATIONSHIP WITH PEGASUS CONSULTING GROUP
Pegasus is uniquely positioned to identify proprietary deal flow and execute on these
transactions as a result of its close relationship with Pegasus Consulting Group ("PCG"), a global
management consulting firm founded in 1995 by Mr. Parmar. PCG's complete portfolio of
consulting services range from business strategy and enterprise transformation planning to
implementation, custom development and systems support.
PCG's extensive experience with businesses in virtually every industry provides an invaluable
amount of depth and research to the Pegasus deal-sourcing process and investment decisions.
Additionally, once an investment has been made, Pegasus has access to PCG's world-class
solutions, effective for hundreds of companies around the globe. These methods are utilized to
improve operations and increase profitability.
VALUE CREATION
Pegasus believes that the right combination of active ownership and management autonomy
helps ensure successful business plan execution. As such, we work directly with senior
management at our portfolio companies to design ways of growing and improving their business,
developing operating budgets that support research and development, capital spending and
add-on acquisitions, and providing access to our global network of resources. We do, however,
incentivize and expect management at the portfolio companies to own the results of their
operational execution.
The Pegasus management approach includes detailed post-investment operations and financial
plans, regular meetings with management, monthly financial and key operating metrics reviews
and the creation of an experienced and accessible board of directors and advisory board.
The Pegasus global network of contacts and relationships offers unique opportunities to
portfolio companies. Mr. Parmar's extensive global relationship network has historically and
continues to allow Pegasus portfolio companies to grow and improve in ways untapped by
current management. These relationships include members of the global business community,
such as CEOs and other executives of major corporations in every industry around the world,
and high-profile financial institutions, whose involvement can quickly help elevate a portfolio
company's brand and exposure.
ALIGNED INTERESTS THROUGH MANAGEMENT INCENTIVES
Pegasus believes that management is the core of the value proposition with any investment. As
such, Pegasus spends significant time and effort looking for strong and motivated management
teams and believes in aligning management and ownership interests through equity ownership
incentive plans.
EXIT STRATEGIES
Through the holding period of an investment, Pegasus is continually evaluating
and researching exit opportunities to ensure that the right exit can be executed quickly.
Possible exits include IPOs, secondary offerings and a sale to a strategic or financial buyer.
With the right mix of financial success, value creation, market and industry positioning and
relationships, Pegasus can help all stakeholders realize outsized returns on their investments.
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