For a long time, Private Equity as an asset class has generated very strong returns for its investors, often higher than many other available asset classes. Blick Partners was founded on the basis of two fundamental observations.
Properly designed MIPs create a powerful link between ownership, accountability and value creation, with clear effects on growth, profitability and, ultimately, shareholder value. Experience shows that when key individuals invest alongside their colleagues in the business they believe in and can themselves influence, both engagement and the quality of decision-making are strengthened.
One of the key reasons for the strong returns is the Private Equity model’s clear focus on allowing key individuals in portfolio companies to invest side by side with the fund through long-term, equity-based incentive programs (MIP).
All too often, a good balance between the interests of the principal owners and the participants is not achieved in the design and implementation of these programs.
Despite the fact that MIP structures have historically provided senior executives in Nordic companies with a unique opportunity to share the returns they themselves help generate, many Private Equity funds have historically been too weak in the implementation of this important tool. Poor design, unclear communication and pressured transaction environments have resulted in the program terms not being sufficiently robust, and therefore not becoming as effective as intended.
Participants deserve good terms, high transparency, and a structure that is both fair and effective.
Blick Partners acts as management’s own representative in transactions where a new owner wishes to implement an MIP.
We represent the participants in negotiating the structure and terms and ensure management’s understanding of the financial implications of the program.
We relieve the CEO and CFO in the implementation of the program and manage the entire process internally, allowing senior management to focus on operations and due diligence.
We eliminate the information gap so that each participant can make their investment decision with full transparency, clarity, and professional support.
By optimizing the terms and increasing understanding of value creation, we lay the foundation for strong engagement and maximized value creation for all shareholders through to exit.
We also want more Nordic companies to embrace the most successful elements of the Private Equity model. That is why we help privately owned companies, without financial owners, to design attractive and effective incentive programs ahead of a future sale. Strong financial performance, combined with the right incentive structure prior to an exit, creates significant value – for both owners and management.
