Our Response to COVID-19
April 03, 2020
At Novacap, we are entrepreneurs serving entrepreneurs. We want and can help entrepreneurs and companies go through these unprecedented and challenging times. We understand that the present market dislocations and business interruptions are creating significant headwinds for companies in managing their cash flow and operations.
We want to be part of the solution.
We realize that the current economic environment and the resulting short-term volatility in business valuations make it very difficult for companies to find supportive capital. In other words, we understand that executing a traditional financing or equity partnership as a source of cash and/or liquidity for a company and its shareholders is significantly more challenging in a COVID-19 environment.
In this context, Novacap is strongly committed to entrepreneurs, business executives and other key stakeholders to find creative solutions that address cash flow and liquidity requirements without compromising long term shareholder value. We are adapting to provide practical solutions that address current business needs. This includes partnering with companies through instruments such as convertible notes and convertible preferred shares that can be disbursed quickly. This would enable businesses to rapidly adjust and adapt by maintaining the sustainability of their operations and/or even allow a company to go on the offensive and take advantage of the current market conditions by executing meaningful M&A transactions.
As a final point, it is essential to highlight that now more than ever Novacap is committed to building meaningful relationships and adding significant value to our partners. We have very deep operational expertise in many verticals across all our funds. In addition, we have a strong and experienced operations team, led by former C-level executives, that is ready to help, regardless of the economic cycle, to continue building world-class companies.
If your company can benefit from our practical and entrepreneurial approach, please do not hesitate to contact us.
President, CEO and Managing Partner
Chairman of the Board and Managing Partner