We believe that ReichmannHauer Capital Partners offers investors a distinct and valuable approach that generates superior
1) Diversity and depth of experience
RHCP is comprised of individuals with a diverse background unified by a common passion for investing in businesses and helping them to achieve their full potential. To accomplish RHCP’s active ownership approach, our firm combines traditional private equity skills with a distinctive set of business building, operational improvement capabilities and transaction and M&A expertise.
2) Proprietary deal flow
RHCP provides investors access to privileged deal flow through its relationships in Canadian and international industry. We generate deal flow and seek to “manufacture deals” both by pursuing a set of investment themes and also through both bottom-up and top-down technical analysis of companies and industries. We look directly for companies that have, or could have, the characteristics of businesses that fit within one of our investment themes and then screen for the key quantitative metrics, strategic priorities and qualitative characteristics that would support further diligence.
3) Rigorous review of potential investments
RHCP has built systems and processes that ensure clarity and rigor in our investment review process. RHCP has in place extremely strict and detailed tools and systems for deal creation, quick screening, investment thesis evaluation, transaction and ongoing investment management.
Once a prospective investment has passed our first level of scrutiny, we generate a custom template to provide key information that will influence our decision to invest. We investigate current operations and the areas where a business could be improved and analyze the terms and merits of a potential deal.
The component parts of this template and other internal investment frameworks provide a common standard to evaluate potential portfolio businesses across industries and geographies. In addition, we use a common framework to highlight the dynamics of the core business from all angles. We extract, in great detail, the core business from the perspective of industry structure, supplier and customer power, the influence of macroeconomic trends, and how the business could evolve in the next five years.
4) Active ownership of portfolio companies
Investors in RHCP gain access to active managers of portfolio businesses. RHCP has significant past experience in operating and building businesses, and we have the explicit goal of leveraging that experience for the benefit of our portfolio companies. Our approach to working with portfolio companies is not to supplant their management’s decisions but rather to supplement them. We help management focus their efforts on the key levers that will drive the business and its value. RHCP acts as a full value creation partner, assisting management teams with more granular management challenges as well. Some of these challenges might include: reviewing and optimizing sales plans, coverage models, and incentives; reducing discretionary spend items, increasing marketing spend effectiveness, improving key operational levers such as throughput time, and ensuring discipline and rigor in key corporate processes like annual planning and budgeting.