Investment Approach
Our investment approach is creative and opportunistic, focusing on opportunities with clear arbitrage potential and a defensive structure to ensure resilience and lower risk. We target attractive, Private Equity-friendly sectors known for their stability, underpinned by a simple investment thesis that avoids complex executions, turnarounds, or undue risk. Through proprietary origination, we uncover unique deals, prioritizing disproportionate risk-return profiles to deliver consistent value to our investors.
INVESTMENT STRATEGY 1
Secondaries Transaction
Secondaries Investments at IR-Capital
At IR-Capital, our secondaries investment strategy focuses on acquiring interests in existing private equity funds or portfolios at attractive valuations, capitalizing on unique market opportunities. This approach allows us to deliver strong returns and high liquidity to our investors through disciplined execution and strategic portfolio management.
Key Advantages of Our Secondaries Strategy
Attractive Valuations: Acquiring assets at favorable prices to maximize return potential.
Motivated Sellers: Leveraging opportunities from sellers seeking liquidity or portfolio rebalancing.
High Liquidity: Structuring investments to enable rapid capital deployment and recovery.
Fast Capital Recovery: Prioritizing swift monetization of portfolio assets to enhance returns.
See case Study A
See case Study B
INVESTMENT STRATEGY 2
Education K-12 Investment
IR-Capital, strategically invests in high-potential sectors such as K-12 education, leveraging market resilience and growth opportunities to deliver superior value to our investors. Our expertise in navigating complex transactions and driving operational improvements positions us to unlock significant value in our portfolio companies.
Why K-12 Education?
Attractive Sector Dynamics: Characterized by contracted revenues, resilience to economic cycles, and high demand driven by educational needs.
Consolidation Opportunities: Growing interest from consolidators acquiring at high multiples, enhancing exit potential.
Market Arbitrage: The target company faced a liquidity crunch due to overleverage and was burdened by a complex governance structure with internal conflicts, creating an opportunity for acquisition at an attractive valuation.
Strategic Execution: IR-Capital acquired nearly the entirety of the company, renegotiated debt with banks on favorable terms, and strengthened the management team to ensure operational stability.
Value Creation Initiatives
Post-acquisition, IR-Capital implemented a robust value creation strategy to enhance the schools’ performance and market positioning:
Increased Enrollment: Optimized existing capacity to boost student occupancy and implementation of a marketing & communication plan, driving revenue growth.
Curriculum Enhancement: Introduced a bilingual curriculum, International Baccalaureate (IB) optionality, and curriculum add-ons related to secular fundamental trends, such as Artificial Intelligence, to elevate academic offerings and appeal.
Platform for Growth: Positioned the schools as a scalable platform for regional expansion, leveraging their strong reputation and operational improvements.
This case study underscores IR-Capital’s ability to identify undervalued assets, address operational and financial challenges, and create sustainable value, positioning our portfolio for long-term success and attractive returns.
See case Study A
INVESTMENT STRATEGY 3
Structured Equity with Downside Protection
IR Capital has structured equity investments with minimum returns whereas we invest development capital in high potential targets to accelerate their growth. Such targets should have a healthy balance sheet, a solid asset base and a clear path to a profitable exit.
In such transactions, we;
Procure minority equity interests in targets at fair entry valuations that would perfectly align our interest with the founders,
Support the founders with the development capital and fine tuning of growth plans and financial structures,
Negotiate guaranteed downs side protection with minimum IRR on investment with contractual exit mechanisms and related guarantees.
See case Study A
Marina de Cascais
Avenida Rei Humberto II de Itália
Loja 65 2750-800 Cascais Portugal
Rua de Guerra Junqueiro, nº 505, 1º andar, Sala D, 4150-389 Porto
ir-capital@ir-capital.pt
Marina de Cascais
Avenida Rei Humberto II de Itália
Loja 65 2750-800 Cascais Portugal
Rua de Guerra Junqueiro, nº 505, 1º andar, Sala D, 4150-389 Porto
ir-capital@ir-capital.pt
Marina de Cascais
Avenida Rei Humberto II de Itália
Loja 65 2750-800 Cascais Portugal
Rua de Guerra Junqueiro, nº 505, 1º andar, Sala D, 4150-389 Porto
ir-capital@ir-capital.pt