GEIVC acquisitions can take many forms. We have taken publicly listed companies private, acquired divisional assets through corporate divestiture transactions, partnered with family-owned businesses and strategic buyers, and purchased and grown companies through industry-consolidation strategies.
Our deals, though far from formulaic, share some basic features: GEIVC provides equity dollars and borrows money for the friendly acquisition of a business with predictable cash flows and strong management. The capital structure of the acquired business depends on the strategy for value creation, which is jointly developed by management and GEIVC. We work with our portfolio companies to design and execute plans for improving operations in such areas as manufacturing, sales, and marketing. Over time, generally several years, we exit our investments through potentially IPOs, secondary offerings, and sales to strategic buyers. When investments are sold, profits are distributed to our investors, which include corporate and public pension plans, financial institutions, insurance companies, and university endowments.
An advantage of GEIVC ownership is that the boards and managers of our portfolio companies need not concern themselves with the short-term perspectives of the financial markets. We are patient investors. We do not focus on quarter-to-quarter results, unless necessary. We focus on building businesses over the long term. Typically GEIVC holds investments for several years, and in some cases we have held them for almost a decade. We also may hold an investment for its lifetime.
Over the long term, effective ownership and management of a company leads to benefits for all of its stakeholders – employees, customers, suppliers, shareholders, and the community. The success of world-class companies depends on these same constituencies. GEIVC encourages its portfolio companies to invest in each stakeholder group. Employees, for example, should be trained in ways that prepare them for better, more demanding jobs. And we encourage our portfolio companies to contribute to the communities where they operate. Innovation is always our priority.
Long-Term Vision and Approach to Global Expansion
GEIVC has taken a long-term, strategic approach to investing outside the United States. We began by identifying unique opportunities in China, Europe and India. We currently have projects forming in all three partnering with 2 institutional and many private investors. GEIVC is keenly aware of the current economic relationship between the U.S. and the rest of the world. The volatility and free market relationships create venture capital opportunities everywhere.
When it comes to Global expansion we are constantly assembling teams of people who possess a high level of talent, education and operations expertise with local market knowledge and experience. This same team rigorously researches a market before entering.