Case Study

LTL Market Study and Investment Thesis Validation for Multi-Billion dollar PE fund

Metafora helps a large private equity fund validate an investment thesis in a new Transportation and Logistics Industry sub-sector with a critical market study.

Executive Summary

Industry: Private Equity

Services: 

Revenue: $1B+

Employees: 

A large Private Equity fund was exploring an investment thesis in a new Transportation and Logistics Industry subsector in which they had no experience. Metafora was engaged to workshop the potential investment and produce a robust Market Study to inform the investment. The investment was made and became a top performer for the fund.

Challenge

Goal: Validate market opportunity before making PE investment.

 

Issue:

  • A multi-billion dollar Global Private Equity fund had recently successfully exited its first investment in Transportation and Logistics
  • Investor was evaluating an investment thesis in a subsector of Transportation and Logistics  as a part of a new investment in the space
  • Investor had minimal knowledge of this other sub-sector of the T&L industry
  • Investor hired Metafora to workshop the investment thesis and create a detailed Market Study

Solution

Metafora leveraged a mix of internal subject matter expertise, interviews with industry leaders (sourced through Metafora relationships), and data gathered from 10+ years of specializing in the T&L industry to produce market study.

Approach

Data Gathering

Metafora leveraged a mix of internal subject matter expertise, interviews with industry leaders (sourced through Metafora relationships), and data gathered from 10+ years of specializing in the T&L industry.

Operating Model & Financial Analysis

Market Study consisted of a broader T&L overview, a deep dive into the Industry subsector operating model, historical and projected financials, and a analysis of top players in the industry subsector.

Trend Identification

Metafora also identified major trends in the industry subsector that supported and opposed the investment and held a series of working sessions with Investor

Produced Market Study

Deilvered a robust Market Study evaluating the potential upside and risks of investment

Results

The investor made a $100M+ investment in the identified industry subsector. The target company has grown 3.5X since its initial investment and will become one of the fund’s top-performing investments.

Investment Amount

Growth Multiple

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