The Fund’s primary investment focus will be on acquiring substantially undervalued, both publicly and privately held companies, which are deemed to be underperforming relative to the companies’ potential. Optimally, these performance-lagging companies would benefit substantially from the Manager’s broadly-based capabilities to significantly impact all the matrixes of the companies’ performance measures, ranging from their top-line growth, to the cost-structure efficiencies, to optimization of their capital structure. The Manager also adds value by advising and assisting the portfolio companies in the all-important maneuvering through the highly government-regulated, but ever-changing business environment confronting the for-profit education business community.
Minerva may assist the portfolio companies by evaluating and bringing in new management teams. It may help in advisory capacity, for example, in helping to realign overall spending relative to revenue generation. This may include closing or overhauling underperforming branch campuses, reevaluating marketing contracts with vendors, among other initiatives.
For portfolio companies trading at substantial discounts, Minerva may also help to reduce the pricing inefficiency by more effective public relations efforts.
Minerva may also seek to generate profitability for the Fund by targeted short-selling. A typical short-sale candidate would likely be a company identified to be embarking on a deeply flawed business strategy, or more rarely, one engaging in questionable practices. For all short-selling candidates, Minerva would have an identified and timed stock-price decline catalyst.
The Manager identifies the potential exit strategies available to each investment before acquiring the target investment. These exit strategies would be designed to maximize the returns on investment, and may include: a) If the holding is publicly traded, sell the shares into the open market, as the demand for the vastly improved operationally entity increases; b) an IPO or; c) a substantial dividend payout to investors, coupled with an appropriate recap of the company.