"We strongly believe in building companies through local presence and effective partnerships with our investees. Aureos' local presence in the market place provides a unique position for Aureos to play an active hands-on role with its investee companies to help them grow and reach their full potential. We want to see them become leading powerhouses in their regions."
(Sev Vettivetpillai, Chief Executive Officer, Aureos Advisers)
Aureos is a leading private equity fund manager investing in established small to medium-sized businesses. Aureos typically looks at MBOs, expansions, pre-IPO and acquisition type of transactions in the US$2 million to US$10 million investment range. Most businesses in which we invest have an operating history of between three and seven years.
We achieve returns for our investors by backing sustainable businesses that have the potential to grow. Target Internal Rates of Return (IRR) are 15% to 20%-plus in dollars.
While all emerging market investment carries with it some risk, our funds adopt diversified portfolio management practices aimed at reducing liquidity risk and currency risk. We endeavor to achieve returns from invested capital in the early stages of a fund's life by focusing not solely on capital gains but also on yield from healthy cash-flows.
We have developed our own proprietary risk management tools to enable us to apply the same strict investment criteria to all our potential investments wherever they are in the world. Standardising our approach in this way allows us to transfer know-how and best practice between our teams in different countries, and achieve consistently high standards of professionalism across the Aureos group.
Using our considerable management experience and skills built up over many years of investing in emerging markets, we help bring investee company management practices up to international standards, providing hands-on training and guidance, introducing rigorous financial controls, and recruiting skilled managers.
Our investment professionals come from a variety of backgrounds – finance, business, consulting, engineering, economic analysis and management – with an impressive track record in private equity.
We also work with successful local professionals and entrepreneurs on the boards of directors of our investee companies to harness their insight, knowledge and experience.
Aureos insists that every portfolio company in which it invests complies with Aureos' Business Principles and Environmental and Social Management System. A dedicated team of experts supports the portfolio companies in achieving international standards for good business practices.
Our investee companies benefit from our global network of local offices staffed by hands-on investment professionals with an in-depth knowledge of the regional economic, political and financial environment. By joining our global network, investee companies gain access to domestic, as well as cross-border expansion opportunities.
View biography of our CEO Sev Vettivetpillai, AAL.