An enormous amount of institutional capital has been invested over the past two to three years in portfolio companies focused either on markets that failed to fully materialize or products and services that were too narrowly defined. Starweaver has extensive experience working with investors in identifying, re-positioning, repackaging and selling portfolio companies facing these problems.

Starweaver benefits investors by helping them save time, money and effort in dealing with this group of portfolio companies. Too often investors are forced to close down or charge-off a business that can otherwise be repaired, but will consume valuable time that is not readily available.

Starweaver can help evaluate the strengths and weaknesses of specific companies within an investment portfolio; work closely with the investors to identify which entities are best to focus resources on and for which ones to create and execute a turnaround, sale, strategic partnership or financing plan that makes most sense.

FAQs:

Q: "How can an institutional investor client calculate the ROI of working with Starweaver?"

A: For most investors, the potential return to them vs. the cost is so large that a strict calculation is not needed. However, an ROI calculation is pretty simple. Each $1 million at risk of loss by an investor will need to be recovered by other fund investments for the fund to simply break even. Since a typical fund of $100 million might, for example, have $20-30 million at risk of loss, the remaining $70-80 million invested will have to generate returns of 25%-35% over their projected holding period of 3-5 years just to recover the potential losses. That means returns will have to increase 5%-10% per year for them to break even. Our fees are of little consequence by comparison.

Q: "Which type of institutional investors are your most frequent clients?"

A: Institutional clients that maintain a substantial sum of un-invested capital and want to dedicate their time and resources to developing new portfolio companies. These investors continue to grow their portfolios and need to focus on that process. "Repairing" businesses is often 10-20 times more difficult than working with new investments, therefore it is a very reasonable and cost-effective alternative to engage us to work with portfolio companies rather than having them charged off.

Starweaver offers a full line of startup, business advisory, M&A and marketing strategy services.
Learn more about our services.

Starweaver has a long history of serving investors well.
Read some of our client case studies.