Kuala Lumpur-based private equity firm Creador has launched an internal division that will focus exclusively on operational value-add, called Creador Plus, founder and chief executive Brahmal Vasudevan told Private Equity International.
The team consists of two former Boston Consulting Group executives, with the search for a third member in progress, and three senior advisors based in Jakarta and Kuala Lumpur.
Vasudevan said the firm is not ready to disclose specific names at this point.
Creador Plus was formally established in January, with operating partners expected to work closely and directly with portfolio companies to identify new areas of growth and implement operational strategies.
“In that process, we are essentially enhancing the value of our investments. It has got to a stage where we can’t even get the team out of these companies because the CEOs of the businesses have become so reliant on their [expertise],” Vasudevan explained.
A number of private equity firms have established separate operational units as the focus on value-add within portfolio companies increases.
Kohlberg Kravis Roberts was one of the first movers in this area, launching its operations division KKR Capstone, which now employs more than 60 operating executives worldwide.
“The skill set required to work with a company to enhance value can at times be a bit different to the skills required to source deals. It is often hard to find people that can work across both [areas] and the [operational] skill set is highly specialised,” Vasudevan added.
Creador is currently raising its second private equity fund targeting $250 million, PEI reported earlier. As of February, the firm had raised over $200 million, preparing for its final close within months.
While Vasudevan declined to comment on fundraising, he added that LPs have received the establishment of Creador Plus “very favourably”.
“One of the things people perceive is that you are only active with your companies if you are a buyout guy. But we are seeing that with many of our minority investments we are a significant minority [stakeholder] so there is [still] a meaningful role for us to enhance value [and] LPs are fairly impressed that even as a minority investor we are being invited into the companies to work with them.”