Value creation in venture capital-backed opportunities

Overview

Bridle Close was engaged by a venture capital firm to enhance value across its portfolio of high-growth businesses. The challenge involved identifying underperforming assets, optimising operations, and positioning companies for successful exits while delivering strong returns for investors.

Client Profile

Our client was a venture capital firm specialising in mid-market investments across:

• Consumer services

• Technology

• Education sectors

With £150m AUM, the firm sought to professionalise its portfolio management approach while maintaining its entrepreneurial edge.

The Challenge

The portfolio presented several complex issues:

• Mixed Performance: While some investments showed promise, others required operational restructuring

• Exit Readiness: Needed to demonstrate consistent growth trajectories to attract acquirers

• Capital Efficiency: Required smarter deployment of follow-on funding to maximise ROI

• Digital Transformation: Portfolio companies needed technology upgrades to remain competitive

Our Approach

We implemented a rigorous value creation programme across three key areas:

1. Investment Optimisation

• Executed 14 transactions (avg. £2m ticket size) with 100% successful exit rate

• Deployed £1.7m growth capital in an on-demand platform, achieving:

  • £1.5m revenue within 18 months

  • 1.7x revenue growth through geographic expansion

  • 19% operational cost reduction

2. Operational Transformation

Food Gifting Business Transformation:

• Doubled production capacity while maintaining quality

• Captured 2% online market share within 12 months

• Implemented direct-to-consumer sales channel

Education Technology Venture:

• Developed SaaS learning management system

• Deployed across 300 early childhood programmes

• Created a recurring revenue model

3. Capital Strategy

• Structured £6m equity raise for key portfolio company

• Introduced institutional-grade reporting for all investments

• Developed portfolio-wide KPIs to monitor performance

The Result

• 100% exit success rate across 14 investments

• 70,000+ users acquired for flagship digital platform within 6 months

• 2x EBITDA improvement in underperforming assets within 18 months

• 19% cost base reduction while maintaining growth trajectory

• £6m follow-on funding secured for star performer

Impact

For the private equity firm and its venture capital unit:

• Transformed from transactional investor to value-added partner

• Established institutional-grade portfolio management processes

• Enhanced ability to identify and execute value creation opportunities

For portfolio companies:

• Underperforming businesses became appealing to local markets

• High-potential ventures achieved scale

• The education platform made a significant difference to its segment

Conclusion

At Bridle Close, we specialise in helping venture capital and private equity firms, as well as their portfolio companies, unlock value. Our unique blend of investment expertise and operational know-how delivers measurable results across:

• Exit preparation

• Performance optimisation

• Growth capital strategies

• Governance