Having been founded in 2008 and with two platform investments to date, Elysian Capital’s portfolio does not have the legacy issues of more long-standing private equity houses. Nor does the firm have the portfolio workout demands on its partners that other private equity firms have. Elysian’s partners are focussed on the current crop of investments, and in making new investments.
‘If you invest in a team with legacy issues you are effectively paying your management fee for the General Partner to be managing someone else’s deal,’ says Ken Terry. ‘The team is distracted by problems in its existing portfolio businesses and can be encumbered with a sense of nervousness and conservatism. The whole reason for investing has been diluted. While management fees are being paid during the fund commitment period that is fine, but as that comes to an end there will be a lot of dislocation of investment professionals, in particular the best staff.’