>> My name is David Horowitz, and I'm a Senior Vice President
of Investments and Lending at Macquarie Group.
So that means I am using capital to invest in primarily private companies.
We are helping companies of various sizes, mostly middle-sized companies, to grow,
to do acquisitions, to buy out shareholders and refinance debt.
And the source of our capital is from Macquarie's balance sheet.
Macquarie is a large public company headquartered in Australia
that has 14,000 people across the globe, and we're responsible
for investing Macquarie's funds directly into these mid-sized private companies
through combinations of lending, as well as investing equity into their companies.
So we fund these opportunities through a variety of sources.
We have a network of investment banks that we work with and brokers
and intermediaries who share deals with us.
They come to us because that we have a large capital base to invest, and their job is to go
out and find companies who need advice on raising capital
and then once they've found these companies and identified them and identified their needs,
then they go out and seek investors like us who can fill those needs
through combinations of providing debt and/or equity.
So they'll reach out to us, we'll engage with them on the basis of sharing information.
So they'll have put together a series of information, usually in a memo format,
that will be shared with us to tell us what the company does,
background on the company's industry, financial information on how the company has performed
for the last several years and how they're expected to perform
for the next three to five years.
From that information, we will do our own work, do our own background research.
We'll talk to consultants.
We'll look for information that might be available in various databases or online.
We will go out and interview people and do our own primary research,
and from all of that information gathering, and we'll put it all
into our own internal presentations and formats, have discussions and then we'll decide whether
or not it's an investment opportunity that works well for us or not.
From that point, we'll engage with both the company as well as their advisors
to see if there's a deal to be made.
We'll offer them something that we think is attractive to them.
They will probably be receiving offers from other folks at the same time.
And in some cases it works out, in other cases, it works out with other parties,
but when it does work out for us, we then engage in the process of underwriting
and completing the deal, getting our lawyers involved, getting our accountants
and other due diligence experts involved, and documenting the transaction that says,
I'm going to give you X amount of capital; you're going to use it
for this growth initiative to build a new factory, to hire people, to make an acquisition
of the company and so on and so forth.
And then from that point on we'll work with the company, usually over a period of anywhere
from three to five years to help them mete out those objectives until it's time for the company
to be sold or for the next investor to come in.