Due to the long and growing holding periods for Venture Capital investments, your investors may grow tired and request early liquidity. In a Secondary Direct Transaction, your investors can sell all or a portion of their investment in your company. We can also perform Stapled Transactions in which we acquire your investor´s position and invest directly into your company in a simultaneous transaction.
If you are interested in offering an alternative exit to your investors, please contact Opteris directly.
The incentives to sell for investors, founders and management are often misaligned. Venture Capital funds have a finite life, typically ten years. VC firms have to satisfy the liquidity needs of their Limited Partners – a growing concern due to the macroeconomic environment. As a result, a Venture Capital firm´s investment time horizon may not coincide with your strategic vision and operational goals. Because their assets are illiquid, your investors may pressure your firm into an IPO or M&A exit to meet their own liquidity needs.
Now, the secondary market offers an alternative exit for your investors, allowing you to remain private longer. Opteris will work directly with your investors to optimize a liquidity strategy which meets everyone´s needs. We are value-added, active investors who will bring decades of VC experience, fresh perspective, new relationships and dry powder to your company.
Due Diligence Process
Our diligence process is specifically designed to minimize effort on the part of the portfolio company. During initial diligence, Opteris communicates with your investors and relies on preexisting company documentation to conduct initial due diligence. Only after we have determined that a transaction is feasible do we begin deeper diligence and interact directly with the portfolio company´s management team. We believe open communication with all parties is vital to create mutually beneficial transactions and foster enduring, collaborative relationships.
Learn how Opteris can benefit you.
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