We work with our portfolio company management teams to employ a four-stage value creation process, typically over a five to seven-year investment horizon. By properly capitalizing a company at the time of our investment, management can refocus its efforts toward achieving EBITDA growth and maximizing free cash flow. The chart below illustrates the prototypical actions and objectives of this process, which are generally customized for any given particular situation.
The combination of our flexible capital approach with the broad resources of Ares Management widens our universe of potential investment opportunities and allows us to remain highly selective in deploying capital in various market environments. Many of these situations originate from proprietary channels and require our Private Equity Group to generate creative and complex structuring solutions.