RMB Ventures
In the context of private equity, value creation centres on maximising returns for shareholders. However, we believe that value goes beyond just money. Maximising value creation requires a holistic approach to growing a business in a way that benefits not only shareholders, but individuals and communities that form part of the ecosystem, and society at large, in a way that helps businesses to reach their full potential across a broader spectrum of metrics than simply how much profit they are generating. We believe this focus builds sustainable businesses that are inherently more valuable.
The emphasis on Value Creation has shifted towards growth and efficiency creation to drive operational improvements, which requires a renewed approach and skillset. As the growth in the economy slowed, RMB Ventures realised that our role as investors needed to evolve from a more reactive owner exercising shareholder rights, to a more strategic, longer term ownership agenda.
At RMB Ventures our purpose is to empower people, teams and businesses to unlock their full potential. We have been building on our value creation capability over the past five years whereby we partner with the management teams of our portfolio companies to co-create a value creation strategy that will ensure long term (post our investment timeframe), sustainable growth for each company.
Flexible according to the scale and lifestage of the business
Apply an unconstrained mindset to discover the Full Potential (FP) of the company.
Create a roadmap of actions to work towards Full Potential.
Use the value creation framework to help flesh out FP:
Market (research)
Strategy (what)
Operating model (how)
People (who)
As well as how digital can enable FP and where the Shared Value opportunities are.
Based on (1) and (2), where are the unlocks to achieve Full Potential?
What are the enablers required?
What constraints need to be removed?
Create a roadmap of actions to work towards Full Potential.
Using our Value Creation framework, we work with our management teams to identify the full potential unlocks across the following four categories:
What is going on around us?
Market
Research
Data
Industry and rivals
Big picture forces
What is going on around us?
Market
Research
Data
Industry and rivals
Big picture forces
Who is going to do it?
Entrepreneurship
Innovation
Management
Culture
What are we going to do?
Tactics
Strategy
Grand Strategy
What are we going to do?
Tactics
Strategy
Grand Strategy
How are we going to do it?
Structure
Systems
How are we going to do it?
Structure
Systems
Who is going to do it?
Entrepreneurship
Innovation
Management
Culture
We can help our businesses create the right conditions and alignment for success, assist them effectively allocate capital and introduce the right incentives to drive behaviours that enable the strategy of the business. Depending on the unlocks, we tap into our ever-growing eco-system of experts to assist.
Profitability does not equal value creation – success should come from doing the right thing, and reaching this full potential is key to maximising value creation.
We believe in understanding the market, co-designing each full potential strategy, enabling leadership teams and finding the right incentives to change mindsets and align with strategy. We want our management teams to embrace the future with unconstrained thinking, and we work with our portfolio companies every step of the way as a partner for the long term. We believe in patient capital, not immediate gains at the expense of sustainable value. Our goal is to create a sustainable pathway of growth and value creation.