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Value Creation

Establishing a close working relationship with the management team of a portfolio company is a critical element in our operating philosophy and a key driver of our success. As a rule, we do not involve ourselves in the day-to-day operations of a portfolio company. Rather, we seek to create equity value in a company by assisting management in identifying the key strategic, operating, and financial priorities, and the resources needed to successfully execute against those priorities. We generally hold at least one seat on the Board of Directors and on key sub-committees of the Board. Specifically, Catterton is able to add value to each investment through:

1. STRATEGIC PLANNING — In addition to the experience of Catterton’s investment professionals, we leverage affiliations with industry experts, including our industry Venture Partners and network of industry contacts (as appropriate), in developing and implementing strategic plans for our portfolio companies.

2. RECRUITING AND RETAINING KEY MEMBERS OF MANAGEMENT —We generally make investments in companies with strong and proven management teams in place. However, in some cases we may recruit additional management when it is required to support the growth of a company. We typically utilize our significant industry contacts for this purpose. In addition, we take an active role in ensuring that the appropriate incentives are in place for the management team. Such incentives are carefully structured to attract, promote, and retain quality managers while protecting the fund’s investments and encouraging high returns on invested capital. In this way, we ensure that the goals of the company, management, and Catterton are aligned.

3. FOSTERING GROWTH — We believe that long-term equity value can be created through a variety of strategic initiatives, including brand building, new product development, strategic alliances, and entry into new channels of distribution, among others. Therefore, we partner with each management team to establish and implement clear strategic and operating plans in order to maximize long-term equity value.

4. ENHANCING OPERATING PERFORMANCE — We work closely with each company’s management team to ensure that the appropriate infrastructure and controls are in place to support the growth plans of the company. We provide assistance in improving systems, performing activity-based cost analysis, improving operating efficiencies, implementing financial controls, budgeting, and supporting the evaluation of capital expenditure decisions. Our professionals have extensive operating and financial experience upon which to draw for this purpose.

 

Catterton Partners brings a unique combination of strategic and managerial talent and experience in support of each investment. Our investment professionals have served as CEOs, COOs, and CFOs of various public and private companies, as well as senior investment and commercial bankers, management consultants, and advisors.