It’s a proprietary framework for active value enhancement in both traditional private equity and special situations which generates creative
solutions to operational challenges and offers resources and expertise that small- and medium-sized
companies typically do not possess.
Clearlake actively partners with management and other stakeholders to optimize operations post investment.Learn More
Clearlake recognizes the criticality to investment value creation of backing the right team.Learn More
Critical to Clearlake’s approach is active thought leadership in portfolio companies’ strategies.Learn More
Clearlake actively partners with management and other stakeholders to optimize operations post investment. In private equity scenarios, this may include creation and execution of 100-day plans, application of value added reporting, budgeting, and governance processes, and prioritization and implementation of critical operational improvement measures. In distressed situations, Clearlake implements its objectives by sitting on formal or informal creditors’ committees with negative or outright control of the fulcrum securities. Post-restructuring, Clearlake is actively involved in implementation of improved cash and liquidity management, expense reduction and capital investment optimization, vendor and customer relationship management, retention incentives for management and key employees and optimization of the capital structure.
Clearlake believes backing the right team is critical to investment value creation. Clearlake thoroughly assesses management as part of diligence and, if needed, recruits talented managers post investment to augment or supplement existing teams. Clearlake will also supplement portfolio companies’ management or boards by utilizing members of its Executive Council to focus on specific value creation drivers. Clearlake aligns incentives with management through performance based compensation including annual incentive and equity plans. Importantly, Clearlake investment professionals build deep, hands-on relationships with portfolio companies that engender collaboration, transparency, and communication, supplemented by clear governance and reporting guidelines.
Critical to Clearlake’s approach is active thought leadership in portfolio companies’ strategies. Before even closing an investment, Clearlake professionals begin contemplating the investment’s exit as a critical factor in the investment thesis. Clearlake has deployed strategies including buy & build, corporate carve-outs, turnarounds, and family and entrepreneur business transitions. Post-closing, Clearlake’s investment teams will partner with Executive Council members and management to refine these overarching strategies into detailed plans to be implemented over the life of an investment.
Through O.P.S.SM Clearlake relentlessly executes upon its investment theses to implement change post investment by leveraging its sector specific experience and O.P.S.SM framework to drive value at its portfolio companies. Once an investment is made, the Clearlake team, together with portfolio company management, strives to continue refining its understanding of the business, including detailed product roadmap reviews, sales pipeline and backlog analyses, operating expense budget construction, working capital and cash flow management, accounting methodologies, human resources, and compensations matters, and information technology issues, among other items, in order to formulate and implement value enhancement strategies.