The Fund
Identifies and acquires ventures with untapped potential
The Studio
Manages the operational restructuring and technological innovation required to unlock that potential
While Private Equity focuses on increasing value through financial management and efficiency gains, it often lacks the operational expertise and technological edge required to drive significant innovation within the companies it acquires.
Who Owns What?
- Investors hold shares in the Fund
- The Fund holds shares in the Ventures and in the Studio
- The Studio holds shares in spin-out opportunities created by the Studio
- The Ventures hold shares in spin-out opportunities created by the Ventures
How Is The Fund Funded?
Capital from Investors
The Fund is initially financed through capital raised from institutional investors, family offices, and high-net-worth individuals. These investors provide the funds that are used to acquire portfolio companies and capitalize the Studio’s operations. This capital is drawn as the Fund identifies and invests in companies that have high potential for growth, particularly through operational improvements and strategic innovations led by the Studio.
Dividends from Portfolio Ventures
Once the portfolio companies begin to improve their operations and scale under the guidance of the Studio, they generate profits. The Fund receives dividends from these portfolio companies, creating a steady stream of cash flow for the Fund. These dividends are distributed to the Fund’s investors, providing them with returns on their investments while the companies continue to grow.
Dividends from the Studio
The Studio, as a separate but Fund-owned entity, generates additional cash flow for the Fund by selling its services to portfolio companies, external clients, and spin-out ventures. The Fund benefits from the profits generated by the Studio, receiving dividends from the Studio’s operations. This adds another layer of cash flow to the Fund, diversifying its revenue streams. External clients and spin-outs further contribute to the Studio’s cash flow, which in turn increases the Fund’s overall returns.
How Is The Studio Funded?
Funding from the Fund
The Fund provides initial capital to the Studio, covering costs such as staffing, R&D, technology development, and operations. This ensures the Studio has the resources needed to support the portfolio ventures. The Fund acts as a primary backer, ensuring the Studio can focus on operational improvements, product development, and scaling the portfolio companies.
Revenue from Portfolio Ventures
The Studio generates revenue by providing operational, strategic, and technological services directly to the portfolio companies owned by the Fund. This includes developing custom solutions, deploying new technologies, and driving growth strategies for the ventures. The portfolio ventures pay the Studio for these services, contributing to the Studio’s cash flow while improving their own operational performance and profitability.
External Clients
In addition to working with portfolio ventures, the Studio can market its services to external clients. If the Studio develops a cutting-edge technology or solution that can be applied beyond the portfolio network, it can offer these innovations to other companies. This creates a new revenue stream, as the Studio can sell consulting services, technology licenses, or product solutions to external businesses, without detracting from its core mission of supporting the portfolio ventures.
Cash Flow from Spin-Out Ventures
The Studio may also create spin-out ventures from innovations or solutions developed internally. These new ventures, formed around promising technologies or business models, generate dividends or service fees that flow back to the Studio. The Studio retains equity in the spin-out ventures, receiving a share of the profits as the spin-out grows and becomes profitable. Additionally, the Studio can offer ongoing services to these spin-out ventures, creating another recurring revenue stream.
In our Equity Venture Studio (EVS) model, the Fund and the Studio have distinct yet complementary roles, each contributing to the overall success of the portfolio ventures. The Fund focuses on acquisitions, investment management, and governance, while the Studio takes on the role of operational transformation, innovation, and technology development. Together, they form a synergistic relationship that drives value creation across the portfolio companies.
Aligning The Studio & The Fund
The Studio operates under the strategic guidance of the Fund, which holds shares in the Studio, ensuring that all innovations, operational changes, allocated time and market expansions are aligned with the long-term growth plans set out by the Fund.
Primarely, Studio’s actions are closely tied to the Fund’s objectives of increasing the value of the portfolio ventures. By improving operational performance and driving innovation, the Studio ensures that the companies become more valuable, which ultimately benefits the Fund’s investors.
Yet, the Equity Venture Studio (EVS) model is also built to drive continuous innovation, while maintaining a sharp focus on portfolio ventures. Infact, one of the key challenges for the Studio is to stay on the cutting edge of technology, while avoiding distractions that might take focus away from the core mission of transforming and growing portfolio companies. The EVS achieves this balance through a combination of technology testing, spin-out processes, talent incentives and guidance control and shares held by the Fund that ensure the Studio remains both focused and forward-looking.
The Studio adopts an experimental approach, constantly exploring emerging technologies like artificial intelligence (AI), machine learning (ML), automation, and digital platforms. These technologies are tested in small-scale pilots to evaluate their potential impact on the portfolio ventures. By investing in R&D and staying informed about market trends, the Studio ensures that it remains equipped to provide cutting-edge solutions to the ventures, keeping them competitive in their industries.
As the Studio develops and tests new technologies, some innovations may prove highly promising but fall outside the immediate needs of the portfolio ventures. In such cases, continuing to focus on these innovations could distract the Studio’s resources from the core mission of transforming portfolio companies
Instead of abandoning these innovations or allowing them to detract from the core focus, the Studio can spin out these solutions into new ventures. This allows the Studio to remain focused on portfolio ventures while monetizing innovations that have market potential elsewhere.
Employees or teams who are highly passionate about the spin-out opportunity may move to the new venture, ensuring that those most invested in the new technology can pursue it fully, without diluting the Studio’s focus.
This spin-out mechanism ensures that the Studio can capitalize on innovations without becoming distracted from its main mission.
This spin-out mechanism ensures the Fund can capitalize on these opportunities as the Fund holds shares in the Studio and the Studio holds shares in the spin-offs.
The Studio can also market these innovations and solutions to external clients, generating external revenue. This could involve selling innovative technological solutions, consulting services, or licensing intellectual property developed within the Studio. These external revenue streams flow back to the Studio and, by extension, to the Fund through dividends, further maximizing value for shareholders.
Employees at the Studio are offered stock options or equity stakes in both the Studio and in spin-out ventures, giving them a direct stake in the success of the business innovations they help create. By offering equity in the Studio itself, the model incentivizes top talent to stay committed to the Studio’s core mission, while also allowing them to benefit from the success of new ventures that emerge from the Studio.
For employees who are particularly invested in a specific innovation or technology, the EVS model offers a natural pathway for them to lead spin-out ventures. This ensures that entrepreneurial talent remains engaged and motivated without diluting the Studio’s core focus.
Basically the EVS model makes sure talents stay cutting-edge and highly motivated, while focusing their time in innovating portfolio ventures, leaving them room to pursue opportunities arising from the innovations being built while making sure the Fund capitalizes every step of the process.
Faqs
The EVS model combines the capital leverage of private equity with the operational andtechnological expertise of a venture studio. Unlike traditional private equity, which oftenfocuses on financial restructuring, cost-cutting, and efficiencies, EVS takes a hands-on,transformative approach to modernize the core operations of legacy businesses. Thismeans we don’t just optimize—we fundamentally upgrade a company’s technology,operations, products, and team. Additionally, unlike venture capital, which typicallyinvests in startups and high-growth companies, EVS focuses on established businesseswith proven revenue streams, using our model to unlock hidden value and position themfor long-term growth.
Legacy businesses offer several strategic advantages. First, they come with established
customer bases, brand recognition, and proven revenue models, all of which reduce the
market risk associated with investing in startups. These businesses often know their
markets intimately and have deep industry expertise, but they may lack the tools or talent
to fully realize modern efficiencies and technological innovations. This is where the EVS
model excels—we unlock value by modernizing their operations and product offerings,
which can lead to substantial returns. Moreover, as many legacy businesses lag in digital
transformation, they represent a large, untapped market with significant upside potential
compared to the often saturated and competitive tech-startup ecosystem.
The EVS model is highly scalable due to its standardized yet flexible approach to
transformation. Our process emphasizes core principles—like digital modernization,
operational efficiency, and talent revitalization—that are applicable across a wide range of
industries. By focusing on incremental yet high-impact upgrades and leveraging a
repeatable framework, we’re able to apply this model to diverse sectors, from
manufacturing to consumer goods. While the specifics of each transformation may vary by
industry, our overarching method allows us to scale the EVS model across multiple
companies, creating a portfolio of modernized, high-value businesses. This adaptability is
what makes the model not only scalable but also broadly applicable across traditional and
specialized industries alike.
A typical transformation timeline under the EVS model spans approximately 24 to 36
months. In the initial 6 months post-acquisition, we focus on in-depth assessments and
quick wins, addressing immediate operational inefficiencies and introducing foundational
technology upgrades. Over the next 12 to 18 months, we drive deeper transformations,
including product innovation, advanced digital tools, and workforce enhancements. By the
two-year mark, we often see substantial improvements in performance and valuation, with
further value being realized in the following year as upgraded products and new revenue
streams mature. The timeline is structured to deliver early operational improvements and
build momentum toward the full 500% value increase, positioning the company for both
immediate gains and sustained long-term growth.
We use a rigorous selection process to identify target businesses that exhibit strong
fundamentals but have untapped potential due to outdated practices. Our criteria focus
on three main factors:
1. Revenue and Market Position: We target companies with stable revenue streams,
typically between €1 million and €100 million, and a strong customer base within a
viable market.
2. Operational Gaps and Digital Lag: We look for businesses that show clear
opportunities for modernization, such as outdated systems, under-leveraged
technology, and lack of digital or operational efficiencies.
3. Scalability of Transformation: We evaluate whether the company's core
operations and product offerings can benefit from digital upgrades, product
innovation, and operational restructuring. We avoid companies in heavily declining
industries or with limited market prospects.
By focusing on these criteria, we ensure that each target has the foundational strengths
and market potential needed for a successful transformation under the EVS model.
Investors in the EVS model can expect an ROI that significantly outpaces traditional private
equity returns, primarily due to our hands-on, transformative approach. While traditional
private equity often delivers annual returns in the range of 15–25%, our model targets a
500% increase in valuation over a 3-year period. This is achieved through strategic
upgrades that fundamentally enhance a business’s performance and market position,
making our model more high-growth than traditional, cost-cutting-focused PE
investments. Our structured framework for digital and operational upgrades enables
scalable value creation, yielding returns that rival high-growth investments while backed
by the stability of legacy business fundamentals.
Investing in legacy businesses does involve unique risks, such as outdated systems,
workforce challenges, and market shifts. However, our EVS model is specifically designed
to mitigate these risks through rigorous due diligence and targeted operational
improvements. Before acquisition, we carefully evaluate each company’s market viability
and operational gaps to ensure it aligns with our transformation criteria. Post-acquisition,
we implement phased upgrades, starting with foundational improvements that
immediately reduce inefficiencies and enhance resilience. Additionally, by diversifying
across multiple legacy sectors, we create a balanced portfolio that reduces exposure to
industry-specific risks. This structured, multi-faceted approach minimizes overall risk
while optimizing value creation.
Pre-transformation, valuations are typically based on industry benchmarks and multiples,
often around 30% of annual revenue for under-optimized legacy businesses. We acquire
companies at a discounted valuation due to operational inefficiencies or limited digital
integration, which positions us for substantial value uplift post-transformation. The 500%
increase is not arbitrary; it’s based on actual case studies where our approach has
generated similar value uplift through comprehensive upgrades in technology, operations,
and product offerings. While the exact figure may vary per business, our track record and
structured process offer strong predictability and reliability for this targeted uplift.
Investors can begin seeing returns as early as the first 12–18 months. While exit remains a
primary point of significant return realization, our model also allows for dividends and
profit-sharing from improved cash flows post-transformation. As operational
efficiencies and revenue gains take effect, some portfolio companies may distribute profits
back to investors, providing an earlier return on capital. The exact timing and structure vary
by investment, but our goal is to offer both short-term gains through dividends and
substantial long-term returns upon exit.
The financial structure in the EVS model is strategically divided to maximize capital
efficiency. Approximately 50-60% of the initial capital is allocated to the acquisition of
each target company, securing control and positioning us to drive transformation. The
remaining 40-50% is directed toward operational upgrades such as technology
integrations, talent acquisition, and product development, which fuel growth and increase
valuation. This balanced allocation ensures that we’re both securing valuable assets at a
favorable price and investing sufficiently in their transformation to realize significant value
creation. The exact distribution may vary depending on specific business needs and
growth opportunities identified during due diligence.
Disclaimer
The information provided on this website, including descriptions of the Equity Venture Studio (EVS) model, case studies, and related materials, is for informational and educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities or investment products. The EVS model and associated investment opportunities are intended exclusively for qualified or accredited investors who meet specific financial and regulatory criteria. Please note that our formal investment structure is currently being established in Estonia, and any information provided here reflects our preliminary concept and operational vision based on our proof of concept (POC). The opportunities described will be open to qualified investors only. This website is not intended for general public distribution, nor is it directed at retail investors. If you have questions regarding your eligibility or wish to learn more, please contact us directly.