T.I.D.E.S.
Nile’s process focuses on investing in GP stakes of asset management firms at a critical point in their life cycles through the integration of Top-Down (macro & market forces analysis) with Bottom-Up research (proprietary T.I.D.E.S.SM framework). Nile combines growth capital with our proprietary work to affect operational improvements in promising asset management firms that we believe are sustainable, scalable, and investable. The T.I.D.E.S.SM framework is comprised of the following:
TALENT
Proprietary framework identifies managers who have demonstrated investment skill
INNOVATION
Invest in teams dedicated to evolving and learning
DIVERSITY
Seeks teams exhibiting diversity of people and thought
ECONOMIES OF SCALE
Ability to manage multiple of current assets without diminishing returns
SPEED
Target teams and strategies that can quickly move from idea generation to execution
Investment Approach
Nile invests with talented managers who seek flexible liquidity options. While Nile is active on an advisory level, the Firm believes the management teams should lead the companies and the investment process on a day-to-day basis. Nile works collaboratively with management teams to:
- Develop and execute business strategies
- Implement efficient sales, marketing and strategy infrastructures
- Institutionalize operations
- Incorporate institutional risk management at strategy and firm level
- Share best practices from our current and former portfolio companies
- Introduce company managers to our extensive network of industry executives
A meaningful equity investment from Nile allows an owner to retain a controlling ownership position, while providing capital for a number of situations, such as:
- Organic growth initiatives
- Buyout of passive shareholders or family members
- Balance sheet enhancement
- Strategic add-on acquisition
- Liquidity options and succession planning for the primary owner or management group
At the same time, the owner has the benefit of working with a strategic investment partner with a successful history of prudently scaling asset management companies. Nile believes its specialized industry knowledge, experience and relationships are valuable to talented management teams as they pursue growth initiatives. Nile’s industry focus provides other important competitive advantages as a value-added partner, including the ability to:
- Recognize important market trends quickly and early
- Recruit world-class, experienced professionals from within Nile’s extensive network
- Enlist its operating partners to help address specific company needs
- Structure a win-win platform to increase overall competitiveness
- Identify attractive merger and acquisition candidates for platform extensions
Investment Criteria
Nile seeks to partner with the founders and management teams of superior asset management companies. Nile creates value by providing talented managers with the capital, deep domain expertise and access to a broad network of relationships that they need to succeed. The Firm invests in companies at critical inflection points with compelling strategies and growth opportunities. Nile will generally seek to invest with managers that meet the following criteria:
- Are primarily engaged as a manager within the asset management industry with a strong, attributable track record
- Have a sustainable investment process that provides a significant value proposition to its clients and other stakeholders
- Experienced investment team with meaningful equity ownership
- Ability to deliver alpha at scale relative to their current structure
- Are well-positioned to benefit from money flow due to secular, cyclical or unique themes and trends impacting their industry sub-sectors
We will consider and evaluate all opportunities that have the ability to scale at multiples of their current structure. Each investment is uniquely tailored to the needs of the manager. Nile takes a long term approach to value creation driven by investments in the team, strategy, and distribution.
