1 FY 2022 - 23 Expansion Strategies in Private Equity
EQUATIO
CAPITAL
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OUR SPECIALTIES INCLUDE…
We at Equation Capital [EQC] are a private equity (PE) & venture capital (VC) company, founded in 2012. Our specialties are impact investing, sustainability, innovation, new market integration, building management technologies, and start-ups.
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OUR TURN-AROUND&DISTRESSEDASSETS PORTFOLIO…
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[EQC] UTILIZES DATACENTERS AS OUR SPECIALIZED MARKET SEGMENT…
OUR CORESTRATEGY&SECTORS THAT WE FOCUS ON…
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[EWC]’s core strategy combines strategic acquisitions, organic growth, and asset repositioning to achieve differentiate growth. Our sectors are logistics, technology positioning, and owner/operator infrastructure.
Go to Market
6 Product Overview Customer Profile Value Proposition Product Roadmap Key Team Members & Strategic Features The Competition Industry Overview Competitive Analysis Product SWOT Analysis
Product Pricing Marketing Plan Product Launch Plan Execution Plan Our Team Product Budget Status Update Key Questions To Ask & Answer AGENDA
7 PRODUCT OVERVIEW CUSTOM SOFTWARE PROTOTYPING MADE EASY FOR ADAPTATION AND OPTIMIZATION!
8 Firm Overview Portfolio Data Centers Value Proposition Asset Management Roadmap Key Team Members & Strategic Features The Competition Industry ProductCompetitiveOverviewAnalysisSWOTAnalysis
Go to Market
Product Pricing Marketing Plan Product Launch Plan Execution Plan Our Team Product Budget Status Update Key Questions To Ask & Answer AGENDA
DATA CENTER Bend, Oregon | 17,500 SQ FT | Tier III
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CEO:
CHASE
Mark Owens | COO: Sarah Daniels Company Overview $250M Net Assets $55M Annual Return Revenue (ARR) 6,000 employee workforce 3% Attrition Rate. 96% BBB Rating. Potential Functions, Program, Needs Emergent Cooling studies and storage Off-site storage for subsidiary company PORTFOLIO – DATA CENTERS
CEO: Mary Javon
Williams Company Overview $780M Net Assets $457M Annual Return Revenue (ARR) 30,000 employee workforce 2.5% Attrition Rate. 98% BBB Rating. Potential Functions, Program, Needs Battery production and R&D Off-site storage; leasing option PORTFOLIO – DATA CENTERS
CONTROL DATA CENTER
Baker City, Oregon | 14,800 SQ FT | Tier IV
Wagner | COO:
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| COO:
Pendleton,
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Oregon | 13,100 SQ FT | Tier III
CEO: Jerry Spaulding Mark Jacobs
Company Overview $3.4B Net Assets $870M Annual Return Revenue (ARR) 57,000 employee workforce 1.6% Attrition Rate. 95% BBB Rating. Potential Functions, Program, Needs Software cloud storage Off-site storage; leasing option PORTFOLIO – DATA CENTERS
DANTE DATA CENTER
Anita (Dunn) Ulbright | COO: Glenn Bolea Company Overview $780M Net Assets $457M Annual Return Revenue (ARR) 30,000 employee workforce 2.5% Attrition Rate. 98% BBB Rating. Potential Functions, Program, Needs Finance software cloud storage Data integration, derivatives, off-site storage; PORTFOLIO – DATA CENTERS
12 ADU DATA CENTER Hermiston, Oregon | 19,200 SQ FT | Tier III
CEO:
13 Customer Expansion Energy Efficiency & Technology Solar Building InfrastructureTech, ASSETS CUSTOMER Wants & Needs Safe, Secure Storage Off-Site Space Fast, Reliable Speed Fears CybersecurityVandalismBreach What We Provide Asset RepositioningIncreasedManagementValuationAssets Management Regulatory Policies DistressedManagementOperationsAssets Valuation Return on (ROA)Assets Key Investments Turn-Around Strategy Change Management Growth Repositioning Assets Higher Growth Markets U.S. Job Creation VALUE PROPOSITION Slow Productivity
14 Q1 | FY 2O22-23 PLAN Assets Q2 | FY 2022-23 ACQUIREAssets Q2 | FY 2022-23 USE Assets Q3 | FY 2022-23 MAINTAINAssets Q4 | FY 2022-23 DISPOSE Assets EXIT NewREPEATAssets ASSET MANAGEMENT ROADMAP
EQC’s TIMELINE STATUS KEY: Phase 1 Phase Phas3 e 2 Phase 4 JAN 2022 W1 JAN 2022 W2 JAN 2022 W3 JAN 2022 W4 FEB 2022 Q1 FEB 2022 Q1 FEB 2022 Q1 FEB 2022 Q1 MON3 WED5 FRI7 MON10 WED12 FRI14 MON17 WED19 FRI21 MON24 WED26 FRI28 MON31 WED2 FRI4 MON7 WED9 FRI11 MON14 WED16 FRI18 MON21 WED23 FRI25 SAMPLE PROJECT TIMELINE – CRM DESIGN Task - ACQUIRE Task – PLAN Task – MAINTAIN ASSET MANAGEMENT ROADMAP Task - USE Task – DISPOSE Phase 5
KEY TEAM MEMBERS ANA CIO - CHIEF INVESTMENT OFFICER
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VPI - VICE PRESIDENT OF INNOVATION
ROMAN
ALEJANDRA PM - PROJECT MANAGER
STRATEGIC FEATURES
Expected Gig Duration: 6 months
ROMAN
KEY TEAM MEMBERS
Ana optimizes manufacturing operations.
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Expected Gig Duration: 6-8 months
ANA
PROJECT
ALEJANDRA PM
VPI - VICE PRESIDENT OF INNOVATION
Third feature
Second feature
Roman’s expertise to growing R&D market share.
Expected Gig Duration: 8 months
CIO - CHIEF INVESTMENT OFFICER - MANAGER
Alejandra builds product dashboards.
STRATEGIC FEATURES
First feature
PROJECT
KEY TEAM MEMBERS
Expected Gig Duration: 6-8 months
ALEJANDRA PM
Third feature
Second feature
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First feature
Expected Gig Duration: 6 months
Alejandra builds product dashboards.
STRATEGIC FEATURES
Roman’s expertise to growing R&D market share.
VPI - VICE PRESIDENT OF INNOVATION
Expected Gig Duration: 8 months
ANA
ROMAN
CIO - CHIEF INVESTMENT OFFICER - MANAGER
Ana optimizes manufacturing operations.
Second feature
ROMAN
Third feature
First feature
ALEJANDRA PM - PROJECT MANAGER
Expected Gig Duration: 8 months
Alejandra builds product dashboards.
KEY TEAM MEMBERS
STRATEGIC FEATURES
Roman’s expertise to growing R&D market share. Expected Gig Duration: 6 months
ANA
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CIO - CHIEF INVESTMENT OFFICER
Ana optimizes manufacturing operations.
VPI - VICE PRESIDENT OF INNOVATION
Expected Gig Duration: 6-8 months
THE COMPETITION
SASS CAPITAL LAKE FUNDS, LLC CLOVER CAPITAL ASSETS
ITA
21 Product Overview Customer Profile Value KeyProductPropositionRoadmapTeamMembers & Strategic Features The Competition Industry Overview Competitive Analysis Product SWOT Analysis
Go to Market
Product Pricing Marketing Plan Product Launch Plan Execution Plan Our Team Product Budget Status Update Key Questions To Ask & Answer AGENDA
22 INDUSTRY OVERVIEW 10% CATEGORY 1 DATA CENTERS $7.64B Market Size 12% CATEGORY 2 BUILDING TECHNOLOGY $67.60B Market Size 45% CATEGORY 3 CLOUD TECHNOLOGY $405.65B Market Size 33% 10 2 6543 Category 1 Category 2 Category 3 Category 4 Market Trends – Private Equity & Venture Capital Industry Series 1 Series 2 Series 3 CATEGORY 4 SOLAR & ENERGY MARKETS $234.89B Market Size
SASSC is a PE firm operating with $250M AUS (assets under management), including 4 data centers with 2 successful exits.
LAKE Funds, LLC. is a PE &VC firm operating with $967M AUS (assets under management), including 23 portfolio assets with 16 successful exits.
SASSC HQ’d in Washington, DC, the thirteenth biggest PE firm in the country.Their prime for an expansive merger, doubling their AUS within the next six fiscal years.
SASS Capital
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COMPETITOR ANALYSIS
LAKE Funds, LLC. is HQ’d in New York City, the second biggest in the PE &VC market in the country with significant upside.
LAKE Funds LLC.
Clover HQ’d in Los Angeles, CA, the thirtieth biggest PE firm in the country. A new CEO with Harvard-nurtured growth strategies guaranteed for a $300M turnaround.
Clover Capital
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ITA Assets
ITAA is HQ’d in Toronto, CA, the second biggest in the PE & VC market in the Canada and is looking to expand into the USA within the next 2Q’s in FY 2022-23.
COMPETITOR ANALYSIS
Clover is a PE firm operating with $135M AUS (assets under management), including 6 data centers with 4 successful exits.
ITAA is a PE &VC firm operating with $1.3A AUS (assets under management), including 42 portfolio assets with 21 successful exits.
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New hires that turn out to be bad investments, setting our production, increasing our Attrition %.
Many investors and vendors want to “think outside of the box” with a newer Minority-owned company in equity.private
T SWOT ANALYSIS
THREATS
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Being a newer company, you must contend with the comparativereputation.brand
Since EQC is a new company (10 years), we are a Minority-Owned firm in a time where racial diversity and equity aligns.
STRENGTHS
S
W
OPPORTUNITIES
WEAKNESSES
GO TO MARKET
HIT THE GROUND RUNNING!
27 AGENDA
Product
Overview Customer Profile Value KeyProductPropositionRoadmapTeamMembers & Strategic Features The Competition Industry ProductCompetitiveOverviewAnalysisSWOTAnalysis
Go to Market
Product Pricing Market Sectors Business Model Execution Plan Our Team Product Budget Status Update Key Questions To Ask & Answer
28 Lead MeanTimeTime Customer DeploymentNeed% ConsumerAdaption Change PercentageFail Market ComparisonPriceBASEDCOMPETITIONVALUECUSTOMER-BASEDPRICINGPRICINGCOST-BASEDPRICING WEAK MEDIUM STRONG REALIZATIONPRICE ORIENTATIONPRICE ASSET PRICING
Infrastructure
The EQC’s interests in increasing our Owner & Operator infrastructure portfolio primarily includes a focus on data centers.
EQC’s consumer-friendly expansion interests include solar industries & infrastructures, building management technology, cloud technology, energy efficiency technology, and energy management.
Tech Positioning
EQC’s investment strategies seek to identify new efficiency, customer prospecting, or to lower operations costs.
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Logistics
Expansion
MARKET SECTORS
EQC’s key factors driving private equity (PE) interest in logistics includes accelerating demand for warehouses, strong fundamentals, and digital intermediary strategies.
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Our Due Diligence phase often discovers the life use of each asset differs and varies. We pride ourselves on tripling (3x’s) our current $5M USD asset acquire investment.
EQC will spend a $5,000,000 USD maximum of investing into each asset we acquire.
Plan 1-3 month
EQC spends proper time in due diligence phase understand the current trends,market,volatilitymarketofthemarketandReturn on Assets (ROA).
EQUATION CAPITAL
***12 other data centers in our EQC portfolio.
EQC has a current total of 16 data centers in our portfolio with 4 successful exits.
CHASE Data Center
Maintain Unfixed
Use Life of Asset Use Unfixed
We try to reach a $5,000,000 USD profit while we maintain and turnaround the distressed asset. Exit
Our business model is designed to quadruple our initial $5M USD maximum investmentinitialduring the exit phase, turning over a $25,000,000 USD profit.
DANTE Data Center
CONTROL Data Center
Acquire 2-3 months
ADU Data Center
(- $5.0M Maximum) $15.0M Annualized $5.0M Annualized $5.0M Annualized $25,000,000 USD Profit BUSINESS MODEL
Due Diligence
EXECUTION PLAN
UPDATE ON THE PLAN & PROGRESS
Go to Market
Product Pricing Marketing Plan Product Launch Plan Execution Plan Company Structure Budget Projections Status Update Key Questions To Ask & Answer AGENDA
32 Product Overview Customer Profile Value KeyProductPropositionRoadmapTeamMembers & Strategic Features The Competition Industry ProductCompetitiveOverviewAnalysisSWOTAnalysis
ROMAN BERGQVIST Fund COO MIRA KARLSSON Creative Director ANGELICA ASTROM CTO HANSSONAPRIL HR Director MARTENSSONJENS Coordinator MATTSSONALLAN CPO RENA MASSINAH Policy & Records NORMAN JACKSON VP Marketing ALEJANDRA MARTENSSON Project Manager 1 KARLSSONMIRA Accounting FLORA BERGGREN VP Production VICTORIA PERSSON Production Manager HANSSONANA CIO ANGELICAHANSSON Dispatch VICTORIA LINDQVIST Sr. Fund Chief Operation Officer
33 #1 Company Leader #2 Company Leader Senior Leadership Team Junior Leadership Team Marketing & Production HR SupportTeam STRUCTURE
MANUEL PASQUALE President
34 Assets 15% increase YoY Exits 10% increase YoY Investments 20% increase YoY Return on Assets 10% increase YoY Gross Revenue 20% increase YoY CompanyRevenue
FY 2023-24 24,000 42,000,000 $240,000,000 $23,394,000 $263,394,000
23 22,000
29 26,000
BUDGET PROJECTIONS
FY 2021-22 30,000,000 $200,000,000 $16,710,000 $216,710,000
20 20,000
32 28,000
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FY 2025-26 52,000,000 $280,000,000 $30,078,000 $310,078,000
FY 2022-23 36,000,000 $220,000,000 $20,052,000 $240,052,000
FY 2024-25 48,000,000 $260,000,000 $26,736,000 $286,736,000
35 $100,000$50,000$0 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 Revenue Over Time $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 Gross Revenue Senior Sophomore FreeJunior Basic Subscriptions Company Sales EQC FUND BUDGET
Risks
FY 2021-22 Q3 financial statements have allocated appropriate budgetary amount as per initial cost estimate with a 20% contingency allocation for potential error.
Key Team Members assigned for preliminary R&D: yes!
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EQC’s design goal of an adaptable prototype for different industries (i.e. finance)
New market trends, inflationary measures, and market volatility.
EQC has developed a wireframe template for EQC’s onboarding of custom asset & change management for their clients: 92% completion rate.
Articles and video resources for onboarding team’s remote use.
We are 2 weeks out from project initiation deployment: on track!
FOUR KEY PARAMETERS STATUS UPDATES
Fund Budget
Time Deployment
Underestimated distressed asset budget.
Pandemic lockdowns hindering on-site development and meetings.
Underestimated Key Team Members incapable of successful delivery.
Once EQC signs software agreement, EQC will begin to R&D any issues or change orders: January 15th deadline!
EQC’s Product Manager to agree to software product R&D: yes!
Asset Deployment
Building various custom asset business models for EQC’s clients.
Addressing Onboarding Strategy levels: Foundational, Optimal, Strategic.
On-site & virtual training and outsourced Q&A sessions, if need be.
Training with clear objectives within fund budget.
Designing adaptable prototypes for different industries (i.e. solar, finance)
Underestimated Key Team Members incapable of successful delivery.
Underestimated unfixed distressed asset development.
What are we optimizing for? Our plan?
Expected durations (6-months to several years) could be underestimated.
Launch EQC “Community Forum” program for seamless engagement.
Strategy consulting space for EQC’s client-base.
Possible challenges in managing EQC’s Business Model?
Articles and video resources for onboarding team’s remote use.
Addressing Four C’s: Compliance, Clarification, Culture, Connection.
37 KEY QUESTIONS TO ASK & ANSWER
Key Team Members & Strategic Features
What systems or processes are ensured for project success?
How do we ensure project success?
Underestimated unfixed asset budget.
38 ERIC D. BECKER +1 (716) 550-1157 ericbeck@buffalo.edu
