When investing in unlisted midsize companies that are top-ranking in their respective industries, Oak Capital acquires and holds more than one-third of the target’s outstanding shares provided that it can actively participate in management. The primary goal is to support the growth and business development of the investees by sharing strategies and risks forasmuch as this investment activity is in essence linked to Oak Capital’s own future Enterprise Value creation.
Under the existing circumstances, this group of investees primarily consists of subsidiary and related companies which - as consolidated units - generate profits contributing directly to Oak Capital’s consolidated results. This group also signifies a major strategic asset since each firm has the potential to generate capital gain for Oak Capital in the event of an IPO, M&A, buy-out or other exit realizations.
A hands-on management style is adopted to guide the investees towards a common goal of enhanced Enterprise Value. Top management personnel at subsidiaries are dispatched out of Oak Capital’s own staff force consisting of investment bankers or specialists with proven managerial experience in the intended industry sector.
Oak Capital does not engage in so-called corporate rehabilitation investments but targets mid-size, promising companies instead.
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