Helping PE firms become efficient active investors
How 99FinTech Partners with Private Equity Firms
- 99FinTech turbo charges the private equity firms with whom we partner.
- We enable PEs to evaluate more deals in less time with greater efficiency and effectiveness.
- And help transform existing holdings to achieve PE performance targets.
Fintech will continue to offer tremendous opportunity for private equity funds. There are certainly plenty of new targets, as well as existing portfolio companies with untapped upside. During this time of uncertainty, some outstanding targets can and will be more easily acquired than in many prior years. And when it comes to existing portfolio companies, in the face of the present economic uncertainty we do suggest that cash conservation be balanced with select value creation activities that will allow the company to weather the storm, strengthen its competitiveness, and eventually maximize your exit value.
Payments, risk, lending, open banking, and regulatory technologies are a few areas where our team (with 20 to 30 years of experience each) has had firsthand visibility. We have helped with some of the largest and most complex M&A targeting, due diligence, and post-merger integrations in the fintech space for large issuers, merchant acquirers, networks and PSPs. A great deal of that has been through work we have done for and with some of the world's largest private equity firms and their portfolio companies, including targeting, due diligence, and post-merger integration and ongoing support. Once capitalized, one of the most significant challenges for the PE is to ensure the management team in place has the ability, will make the effort, and has the desire to execute on the full potential envisioned in the deal hypothesis.
Unfortunately, many studies have shown that the management team needed to take a portfolio or target to the next level is a major obstacle for achieving target returns. And that’s what 99FT solves for our PE clients, with our deeply experienced team of former fintech CEO, CFO, CRO, COO and CMO executives, former Big 4 and other consulting firm partners, and a former US regulator.
We not only target, assess and recommend, but we can help integrate and operate where gaps exist until you can find and train (often with our help) permanent management to fill those roles.
We specialize in helping PE firms and their fintech holdings:
» Achieve readiness for market launch or acquisition/post-merger integration;
» Accelerate through critical lifecycle stages, such as penetration, scaling or diversification;
» Gain analysis-driven understanding, visibility, and oversight of their holdings, partners, or vendors; and
» Understand implications and adapt to external events.
We help active investor PEs cover more ground efficiently, and we help passive investor PEs become active investors.
But you have a firm you already use?
But you have a firm you already use?
But you have a firm you already use?
That’s fine, 99FT works with many of the largest and most prestigious consulting firms in the world. They hire us to subcontract and fill the payments and fintech projects and roles they sell to private equity firms. You can hire us directly at lower rates, or you can arrange to hire us as subcontractors, typically at a higher cost to accommodate the value you feel the larger firms bring to the projects. Think of us as fintech specialists, that’s all we do. If you need a generalist, those firms can be excellent (and some have partners with fintech experience). However, many have only consulting experience, whereas every 99FT executive brings both industry leadership and operational experience as well as consulting experience.
Skin-in-the-Game
But you have a firm you already use?
But you have a firm you already use?
What few of the larger firms do, and do well, is placing true skin in the game. 99FT starts every project by exploring how we can align our goals and objectives with your firm’s goals and objectives. This can mean offering upfront discounts with performance bonuses for achieving major milestones. In many cases we can even take equity as a form of payment.
99FT is Focused on the Private Equity Market
Rather than selling and delivering one-off projects for any fintech needing help (there’s certainly no shortage of them), 99FT focuses on partnering with private equity firms for three reasons:
- A fintech that has the backing of PE has a level of pressure and expectations that must be met, creating a strong push for results that most independent companies lack. 99FT wants to support projects which involve accountability and deliver results.
- A fintech with PE backing is much more likely to be able to afford to achieve their results. We’ve seen many great fintechs, some with great management teams, that struggle to get capital. Once they’ve passed the PE test and have capital, it’s all about execution. That’s the perfect environment for 99FT to succeed and help our PE clients and their portfolio companies succeed.
- Private Equity firms have some of the brightest talent in the world. Collaboration with that kind of talent is what we thrive on, and exceeding expectations for firms like that is what leads to more successful projects together. By avoiding projects led by mediocre leadership that is slow to learn or adjust, is indecisive or lacks talent (often found in non-PE projects), we are able to spend less time selling and educating, and more time delivering, executing and exceeding expectations.
99FT Services to Private Equity
We deliver value to our PE partners typically through one or more of the following services:
- Targeting
- Financial due diligence
- Synergy due diligence (should the target offer potential revenue or cost synergies in combination with PE current portfolio companies)
- Value creation planning
- Organizational transformation and optimization (for both operations and technology)
- Capability review and expert opinion
- Regulatory readiness for new product/business launch
- Regulatory remediation and corrective action
- Regulatory action preemption (e.g. anticipating and preventing regulatory action by leveraging complaints, social media, etc.; regulatory outlook and gap assessment)
- Bank-fintech partnership enablement (e.g., helping fintechs find bank partners and prepare for and succeed through due diligence and ongoing oversight)
We help active investor PEs cover more ground efficiently, and we help passive investor PEs become active investors.
Let us show you how 99FT is different!
For more information, please
email us at info@99fintech.com
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