Grey Owl Advisors
Grey Owl Advisors provides strategic, operational and financial oversight for owners of differentiated energy, industrial and infrastructure service companies and specialty manufacturing businesses of all sizes. Grey Owl also provides its services outside these targeted industry sectors in special situations and to business owners specifically seeking access to Grey Owl’s background and experience. Grey Owl adds value by developing and implementing hands-on organizational and financial improvement initiatives to enhance shareholder value. Grey Owl leverages its founder’s experience evaluating, buying, managing, improving and selling businesses along with building and professionalizing company management teams across numerous industry sectors and through several economic and energy industry cycles.
Grey Owl’s innovative business model fully aligns the interests of all parties. Grey Owl charges a nominal monthly management fee, but the vast majority of its economic incentive is linked to the creation of incremental equity value over time and is triggered upon successful exit of the business owners’ investment. The target audience for these services are private equity fund professionals with businesses held in legacy funds towards the end of (or even beyond) their originally agreed-upon term. Other types of business owners (i.e., publicly-traded companies and individuals) are targeted for Grey Owl’s advisory services as well.
Grey Owl charges its monthly fee directly to the portfolio company and effectively replaces the private equity fund professionals in overseeing their investment and directing the company’s management team thereby allowing these fund managers to focus on larger and/or more relevant investments in their active fund(s). Often assuming a position on the Board of Directors as part of the engagement, Grey Owl’s real economic upside is based on receipt of a specific percentage of the equity value created during its engagement which is triggered upon successful sale of the company.
To the extent Grey Owl is working with a non-core division of a publicly-traded company (or a privately-owned business) which may or may not be sold ultimately, the financial arrangement described above is modified to ensure continued alignment of interests and reasonable financial incentive. Additionally, in certain situations as part of the engagement, Grey Owl’s founder may also agree to assume a specific role within the business (likely as an interim or fractional c-level executive or even as a Chief Restructuring Officer as/if appropriate) with commensurate compensation to be agreed upon in advance.
Grey Owl’s current project focus areas and criteria are summarized below:
- Target: PE-Owned (or Privately-Owned) Businesses without Clear Exit Options
- Size: Agnostic but Often too Small to Justify Owner's Time, Energy & Focus
- Geography: United States & Select International Countries
- Structure: Monthly Retainer with Upside at Exit Based on Equity Value Created
- Role: Actively Involved with Management Removing Owner's Direct Burden
- Management: Evaluate, Retain, Replace, Augment & Incentivize as Appropriate