Our client is a family office, raised a listed equity portfolio of $250M invested across banking, entertainment, telecom, energy, and construction sector in the GCC region.
Our client wanted us to evaluate the past performance of each company and its growth prospects. They also wanted us to assist in trade sales of the underperforming companies of portfolio.
JMI Implementation
Conducted detailed performance analysis on portfolio and found that the invested value of $250M fell 15% in value. However, dividend received during the period provided the portfolio MoIC of 1.24x and XIRR of 2.2% over 12 year of holding period.
JMI team conducted in-depth analysis of each company and their past dividend pay out. JMI team identified that out of 18 companies, 10 companies had MoIC > 1 and positive IRR. The rest of the 8 companies had a negative return on invested capital.
Conducted relative performance analysis with global indices. JMI team calculated the MoIC for S&P 500 and FTSE 100 would be 2.5x and 1.8x for duration of 12 years on same invested amount.
Based on the analysis, JMI recommended the sale of 6 underperforming companies based on past performance and future growth prospects.
JMI also carried out the liquidity analysis on underperforming companies and identified that one of their investment in the company would take ~50 trading equivalent days for sale on their exchange and two of their companies would take more than 10 days for the stake sell.
JMI recommended the client to find a strategic buyer for the sale of one company having low liquidity and assisted the client in gradual sale of its stake for remaining 5 companies on stock exchange.
Value Delivered
JMI conducted deep research on past performance of portfolio companies.
JMI team recommended the growth prospects on underperforming companies.
JMI team conducted liquidity analysis for each of its stock.
JMI team assisted the client in gradual sale of underperforming stocks.
