A: A private equity strategy has three components. One is that we're very sector focused (healthcare, industrials, energy transition, business services and consumer opportunities).
We're very focused on targeting high-quality businesses, meaning we're not a distressed-oriented private equity buyer.
And then thirdly, and very importantly, we focus on situations where we think that we can add unique value alongside the entrepreneurs. We're really thinking about a partnership with the entrepreneurs where we bring differentiated value-add beyond what the entrepreneurs can accomplish themselves or what other competitors in a process might be able to do as well.
What that means to us is that it tends to sort of take shape in a couple different ways. On the demand side, to accelerate growth in Asia that can either happen organically or inorganically.
Organically by identifying teams or people in China by connecting portfolio entrepreneurs with our other portfolio companies, other relationships, other ecosystem, elements of our ecosystem in Asia … helping on distribution. It can happen in any number of different ways, but some, those are some of the specific ways that we help to accelerate a growth story in Asia organically.
On the inorganic side, we're so well-connected on the ground in Asia, we know the M&A targets, but we also have the unique capability of being able to help a Western firm — in the case of a global situation — acquire and integrate a firm that is a bolt-on acquisition that is based in Asia. Not easy to do. So demand capture, accelerating growth, organically or inorganically, is one of the key ways that we add unique value.
Another second way that we add unique value is on the supply chain side or on the supply side — which either can mean talent-related, as in, sort of leveraging the deep talent base in Asia or on the supply chain side. Usually what that means is enhancing the agility of a supply chain.
The third way kind of comes back to this deep-value creation team that we mentioned. We're big believers in applying technology to various parts of a company's processes to help optimize operations.
So we use all that … the value creation team, and especially the team of third party consultants and advisers and software-related folks to digitize important workflows and processes within a company. It could be procurement, it could be supply-chain related, it could be CRM (customer relationship management). But it's really using that talent base to help make those processes more efficient and more effective. We think that the deep-value creation team is very unique in private equity. I'm certainly not aware of another firm that has investment and capability of that sort.