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What is Active Partnership?

Active Partnership is how we create value by helping to make companies the best they can be.

Our Active Partnership approach starts during the due diligence process, as we prepare to invest, and continues through our equity participation right up to exit.   At every stage, we aim to help our portfolio board and management to create a healthy, successful business with sound financials and a bright future.

Active Partnership is central to value creation in our investments.

Case studies

Xellia (formerly Alpharma API)

Xellia (formerly Alpharma API)

Transforming the former division of Alpharma Inc into an independent global speciality pharmaceutical supplier...

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Where do we create value in businesses?

We help create value through three elements:

Strategic and sector insight
Our understanding of specific sectors, growth trends and drivers of value is a core part of our origination work.  We add to that our experience in having helped management develop the strategy for hundreds of companies over the years. In particular, we bring to management teams our understanding of how best to navigate through changing industries to maximise strategic value in the medium and long-term alongside the daily challenges of managing their business.

Operational and functional excellence
With the breadth of our investments across sectors and geographies, we are able to share best practice across industries, helping our companies become even better at managing commercial and operational activities and at building their capabilities.   We also provide our management teams with access to benchmarks and expertise across our global portfolio (fior example through our various operational forums, our on-line portal 3iNet, and our advisor network).

Outstanding governance
We want to help the companies we invest in achieve market leading governance standards. By ensuring appropriate oversight and control, managing risks and creating best in class corporate responsibility standards we help develop businesses which are healthy and create value for all stakeholders.  We have a strong track record in reporting, benchmarking and performance measurement which we can transfer between all our companies.

It is critical that the three elements are considered together and not in isolation.  Great operational capabilities won’t generate a market leading business unless there is the right strategy and strong governance in place.

How do we create value in businesses?

Our partnership approach is individually tailored.

There are three elements to focus on:

1. We are actively involved.  We work closely and collaboratively with our portfolio board and management, providing ongoing support from our capacity as board members to ad hoc interim roles.  Our role is to support management and give them the tools needed to build lasting capabilities and competitive advantage.

2. We use experienced resource. We apply the best team for the job through a combination of our highly experienced investment teams and network of specialists and senior advisors.  This ensures the right skills and resources are in place to identify opportunities for performance improvement, transform businesses and deliver the value creation strategy.

3. We are systematic. We consistently apply a systematic approach to identify, implement and realise opportunities for value creation.  Together with our companies’ boards and management, we work through targeted solutions addressing key strategic, operational, commercial and financial levers.

Civica

Driving growth through new services, international expansion and acquisition in a consolidating global BPO market.

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Civica

Civica is a market leader in the supply of software and consultancy services to the public sector. Its 1,700-strong client base spans the UK, Australia, New Zealand, Singapore and the USA, with activities ranging from local government and social housing to law enforcement and education.

Civica’s opportunity lies in its ability to develop a wider managed services and BPO offering in response to evolving purchasing requirements in its client base.   An active M&A programme is also driving a successful consolidation strategy, both capturing market share and augmenting the current product offering, with two acquisitions already completed in FY 2008/09.

“Active help from a partner that combines new ideas with the experience to implement them is fantastic. The last thing businesses need right now is more theoretical advice. 3i deals in practicalities.”
Simon Downing
CEO, Civica Group

Eltel

An extensive change management programme focused on rationalising complexity in a high-growth roll-up Nordic telecoms and electricity service provider.

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Eltel

Eltel designs, builds, maintains and enhances networks for the telecoms and electricity sectors. Employing nearly 10,000 staff, it operates in the Nordics, the Baltics, Poland and Germany. 

Borne of a highly-active acquisition strategy which saw 40 businesses bolted together over an 8-year period, Eltel exhibited all the hallmarks of ineffective integration and under-management. Driving through comprehensive change and implementing a sustainable business model was therefore imperative if the business was to achieve its ambitions for further European expansion.

"3i has been a close partner... their hands-on support in upgrading the finance organisation, and in designing and supporting the implementation of new financial reporting and incentive systems, has been particularly valuable."
Thomas Berglund
Chairman, Eltel

Mold-Masters

Driving global growth by maximising operational efficiency and capitalising on industry-leading products and best in class technology.

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Mold-Masters

Mold-Masters is a leading global manufacturer of hot-runners, a critical component in the plastic injection molding value chain. The company generates the the highest margins in the sector and its success to-date has been driven by a combination of industry leading customer service and best-in-class technology. 

To achieve its strategic goals Mold-Masters needed to review its commercial and operational effectiveness. In addition, greater focus on fixed costs and global cash management represented significant opportunities for efficiency.

"In times of great challenge it is important for partners to be aligned and to strive for greatness. Since its inception, Mold-Masters has had a strong change-oriented culture."


MWM

From under-managed subsidiary to best-in-class manufacturer striving for continued global expansion across both developed and emerging markets.

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MWM

MWM is a global leader in the provision of efficient and environmentally-friendly decentralised power generation systems.  It serves a broad client base, fulfilling both developed market demand for renewable energy and emerging market demand for independent power supplies.

As a former subsidiary of German conglomerate DEUTZ AG, MWM was faced with the task of reconfiguring its organisational structure to meet the demands of being an independent, lean and commercially-attuned business operating in a growth global market.

"3i is a highly supportive partner and has already given MWM a lot of practical support in accelerating international growth. 3i has taken the initiative with a number of projects that have been integral in building our strategic plan."
Peter Grosch
Chairman MWM

Scandlines AG

Transforming a formerly state-owned business into a ‘best-in-class’ ferry and shipping operator through a comprehensive programme of organisational and operational efficiencies.

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Scandlines AG

Scandlines is one of Europe’s largest ferry companies transporting some 18 million passengers, 4 million cars and 1 million trucks a year across 7 routes in the Baltic Sea.   The business also has a successful on-shore retail arm. 

Hampered by an unwieldy corporate structure  – a legacy of its former state-ownership – sweeping change was imperative if Scandlines was to capitalise on the multiple opportunities presented by the expansion of EU territories surrounding the Baltic Sea.

“The scale of change required to commercially realign Scandlines business was daunting. 3i’s ability to drive through that agenda is testament to the range and quality of specialist expertise they were able to deploy to get the job done."
Jan Stenberg
Chairman, Scandlines

Xellia (formerly Alpharma API)

Transforming the former division of Alpharma Inc into an independent global speciality pharmaceutical supplier...

Read more...

Xellia (formerly Alpharma API)

Xellia is an Oslo-based global supplier and developer of active pharmaceutical ingredients, specialising in injectable antibiotics. The business serves a global client base from four production sites across Western and Central Europe and Asia.

As a newly independent business, Xellia needed support in shaping the post buyout organisational structure. The opportunity for the business will be in transitioning from a niche API supplier into a market-leading independent global speciality pharmaceutical supplier through new product development,  improved margins through forward integration to final dosage forms and continuing to offshore production to low-cost countries.

“The depth of 3i’s network to recruit the right board and leadership team for the company has played a major part in Xellia’s transformation."
Carl-Åke Carlsson
CEO, Xellia