Vanterra believes that segments of U.S. lower-middle-market and specific emerging markets such as India, China, the Middle East, Africa, and Eastern Europe, represent the most attractive sectors of the private equity market. These markets are characterized by rapid growth, higher number of transactions, a larger percentage of deals sourced outside of competitive auctions, and lower purchase price multiples. Vanterra believes that the combination of these factors allow for significant value-creation opportunities.

Vanterra’s private equity platform has two components:

• Fund Investments:  Invest in “best of class” lower-middle-market private equity funds (typically fund sizes less than $500 million) that have a unique ability for value-creation and sector expertise. Vanterra will focus on funds that can demonstrate a distinct competitive advantage over their peers and can also serve as a resource in terms of market intelligence.
• Direct Investments: Invest directly in lower-middle-market companies (typically with transaction values between $20 and $300 million). Direct investments may include (i) co-investments offered by Fund Investments and (ii) investments originated from the proprietary network of Vanterra and its affiliates.

Vanterra’s strategy is based on proactively identifying and diligencing the top performing emerging manager private equity funds who have a demonstrated expertise within a targeted sub-sector and definable ability for value-creation. Vanterra’s integrated model of investing in funds within identified target sectors and regions creates a network of key relationships and partners that will facilitate attractive direct investment opportunities.

The cornerstone of Vanterra’s strategy is to establish longstanding relationships with top performing fund partners who share Vanterra’s philosophy, both as a source of high quality deal flow and a unique diligence network.