TYPES OF CLIENTS
AFV Management provides investment advice solely to its Fund clients, and references
throughout this Brochure to “clients” and to AFV Management’s related duties to and practices on
behalf of its clients and/or investors should be construed accordingly. The Funds generally include
investment partnerships or other investment entities formed under U.S. or non-U.S. laws and
operated as exempt investment pools under the Investment Company Act of 1940, as amended.
The investors participating in the Funds generally include individuals, banks or thrift institutions,
other investment entities, university endowments, sovereign wealth funds, family offices, pension
and profit-sharing plans, trusts, estates or charitable organizations or other corporations or business
entities and from time to time include, directly or indirectly, principals or other employees of AFV
Management and its affiliates and members of their families, operating partners or other service
providers retained by AFV Management, as well as executives of portfolio companies.
The relevant General Partner also generally is permitted from time to time to establish
Funds that are alternative investment vehicles in order to permit certain investors to participate in
one or more particular investment opportunities in a manner desirable for tax, regulatory or other
reasons. Alternative investment vehicle sponsors generally have limited discretion to invest the
assets of these vehicles independent of limitations or other procedures set forth in the
organizational documents of such vehicles and the Governing Documents of the related Fund.
The Funds generally have a minimum investment amount of $100,000 for third-party
investors, and Fund interests are offered and sold solely to qualified purchasers (or qualified
knowledgeable employee AFV personnel). AFV Management generally is permitted to waive such
minimum investment amount.
METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS
General
AFV is a private investment firm focused on buyouts, equity, debt and other investments
in mission critical software and data businesses, as well as businesses in disruptive market places
and/or businesses that have positive disruptive regulatory trends, in each case, believed to benefit
from AFV’s in-house operating professionals and experience. In particular, AFV invests and
works alongside entrepreneurs and management teams that are focused on bringing technologies
to the world that improve our environment, data transparency and operational excellence. AFV
Management’s investment advisory services consist of identifying and evaluating investment
opportunities, negotiating investments, managing and monitoring investments and achieving
dispositions for investments. AFV’s investments are in both public and non-public companies.
AFV Management’s investment strategy for the Funds focuses on the acquisition of
interests in companies that AFV Management believes have critical software and data, competitive
advantages and/or barriers to entry, and the potential for strong market positions within its
industries. As a result of the above factors, AFV Management aims to purchase for the Funds good
quality businesses at valuations AFV Management believes to be low relative to their underlying
potential.
Once an investment opportunity has been identified, AFV Management seeks to implement
an effective operating strategy to improve the performance of the acquired company by (i)
developing restructuring and operating plans, (ii) building the management team and (iii)
providing significant resources to portfolio companies.
There can be no assurance that AFV Management will achieve the investment objectives
of any Fund and a loss of investment is possible.
Investment and Operating Strategy
Deal Sourcing and Due Diligence. AFV Management receives potential investments from
its deal source network and other third parties and, at times, markets its investment criteria to its
deal source network with telephone calls, emails and in-person meetings. Once a potential
investment is identified, AFV Management develops an investment thesis and, through a detailed
due diligence process, seeks to verify such thesis and investigate the major business risks. As part
of its diligence process, AFV Management completes a detailed analysis of an industry including
formal meetings with a target company’s management team, contacting a target company’s
customers and vendors, AFV Management’s contact network and, in certain instances, industry
consultants.
Develop Restructuring and Operating Plan. Senior members of the professional and
operating staff of AFV Management and its affiliates develop an operating plan prior to the close
of each transaction focusing on the target’s strengths, weaknesses, competitive position, industry
trends and other relevant factors.
Build Management Team. AFV Management may supplement or replace the management
team at a new portfolio company or advise the existing management team on ways to improve
performance. AFV Management and its affiliates routinely search for highly qualified senior
managers and often identify qualified candidates prior to making the next investment. In certain
instances, operating professionals of AFV Management or its affiliates will fill key management
roles (including chief executive officer or chief financial officer) on an interim basis immediately
following closing until a professional management team can be assembled.
Maintain Active Involvement in Portfolio Companies. AFV Management aims to act
decisively with respect to newly acquired portfolio companies and typically makes significant
changes to the acquired company within the first year after acquisition, which includes in most
instances operating professionals of AFV Management or its affiliates taking active operational
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