Case Studies

Financial services - Banking

Portfolio Loan Management

Services:	Portfolio construction and Loan Management, Corporate Restructuring, Interim Management.
Background:	Engaged by a major Australian bank as their Principal Advisor to assist with restructuring and liquidity of their US (subsidiary) State Community Bank, operating a US$ 7Bn Loan book. The distressed portfolio was initially categorised as US$800m.
Steps Taken:	Over the course of 12 months and residing in the US, the role included establishment of a dedicated special purpose team, portfolio construction, loan management (of HNW individuals, corporates and syndications), portfolio reporting and financing considerations. Line management was dual track – both to US and Australian senior executives.
Implementation and outcomes:	At the end of the engagement, we reduced the categorised portfolio to US$350m, through direct and hands on management of the underlying loans and relationships. This facilitated divestment of the bank soon after at a substantial premium uplift to carrying value.

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Financial services - Funds management (Alternative asset)

Portfolio construction and management

Services:	Restructure, Portfolio Construction, Recapitalisation
Background:	Engaged as the COO of A$ 2Bn alternative assets portfolio of a public market funds management division, we were charged with providing liquidity to an underperforming business operation. This portfolio included direct investments, Infrastructure, Private Equity and Fund of Funds assets.
Steps Taken:	This role included assessment of performance and profitability drivers, reporting and operating systems, portfolio construction and risk management practice. In addition the direct investments required hands on management and investment responsibility.
Implementation and outcomes:	Over the course of 5 years, this alternative asset portfolio delivered IRR performance of 20%, with the Direct Investment portfolio delivering 35% together with a net profit contribution in excess of $A85m, at a cost income ratio of 11%.

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Information technology and Healthcare – electronic health software solutions

Reporting systems

Services:	Integration and review of Board & Management reporting systems, Board and investment management roles
Background:	Formerly an ASX listed entity - global developer of software applications for electronic healthcare solutions with representation in over 35 countries, revenues of A$550m and in excess of 3,500 personnel.
Steps Taken:	Post the acquisition, we assumed a leading role in the investment management on behalf of the majority shareholder and also joined the Board to facilitate enlarged and complex organisational and implementation priorities.
Implementation and outcomes:	Recognising the immediate post acquisition needs, we facilitated enhanced Board reporting, simplified budgeting, streamlined cashflow management and enhanced risk management strategies through the Board Audit and Integration sub-committee structures.

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Agriculture - beef cattle production and property portfolio

Recapitalisation and divestment

Services:	Restructure, Recapitalisation, Board and Investment management role, Divestment
Background:	Australia's premier beef cattle production and property operation (27 stations, 550,000 head of cattle, 11.7m Ha land holding), this private enterprise was owned by a public listed entity for 40 years. We were charged with the task of creating a liquidity mechanism on behalf of the shareholder, due to volatility of earnings (record profit and record loss in successive years) and brand management perspectives.
Steps Taken:	Following a comprehensive strategic review and taking a Board position as the owner's representative, we undertook a series of initiatives over 18 months to enhance liquidity and sale prospects.
Implementation and outcomes:	Conducted a public sale campaign that attracted significant domestic and foreign interest, resulting in a sale of the group in the order of A$500m enterprise value.

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Communication services and Utilities - Fibre-optic telecommunications

Interim management (CRO)

Services:	Interim Management (CRO engagement), Operational and Financial Restructure, Divestment
Background:	Privately owned international US based global fibre-optic carrier and services entity - loss-making, under-capitalised, and with major governance issues.
Steps Taken:	Following a strategic review at the request of the major shareholder, we assumed the role of President & COO to facilitate an extensive Group-wide reorganisation and recapitalisation program and instigate a bankable business plan for the purpose of external funding.
Implementation and outcomes:	Initiatives taken included corporate reorganisation of company wide functional roles and responsibilities, instigation of 3-way forward budgeting and sensitivity analysis, risk management strategies, cost control savings of US$3m/mth, sale of a $15m IRU, closure of non-core operations, completion of a $30m ROW construction project on time and under budget, design of a tailored ROI sales and marketing program and completion of a Business Plan to raise 3rd party funding. Ultimately unable to raise funding (2001 vintage), achieved a sale for ~20c/$ of invested capital and mitigation of material contingent liabilities.

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Resources and Mining - Base metal exploration and mining operations

Operational restructuring and divestment

Services:	Restructure, Recapitalisation and Divestment
Background:	Formerly ASX listed - a copper mining, exploration & development entity, with interests in Australia, North and South America. It was loss making, technically insolvent in the absence of support of its major shareholder, with significant contingent liabilities and questionable viability.
Steps Taken:	We assumed responsibility on behalf of the majority shareholder and effected Board & Management changes to accommodate strategic direction, financial probity and operational requirements. Immediate and medium term plans were agreed and implemented.
Implementation and outcomes:	Initiatives implemented over 5 years included Balance Sheet recapitalisation, stakeholder management program, US mine closures, one of the largest US copper reclamation projects, successful US litigation, South American JV mine expansion, sale of non-core assets. After a global review program, it was sold unleveraged for over A$500m in late 2006 and delisted.

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Property - Funds management

Stakeholder management

Services:	Advisory role – Stakeholder Management and Recapitalisation
Background:	Engaged to provide strategic advice to a listed A-REIT, facing sustained pressure from its Banking company and faced with a significant amortisation repayment.
Steps Taken:	We provided both the Board and Management with a clear strategy around a strategic review and documentation of the business operations that enabled the company and a subordinated debt provider time to consider its options.
Implementation and outcomes:	The passage of time that was secured enabled the client to facilitate a review of equity participation and refinance options, resulting in a recapitalisation of the business and an ability to trade out of their financial challenge.

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