FOCUSED ON OUR EXPERTISE

Core Industries

We are focused solely within our Core Industries where we have strong domain expertise, established executive networks and a track record of successfully implementing value-add initiatives.

We apply a theme-based approach to idea generation to find opportunities where actionable change exists. We are focused on identifying Market Seams – that is, areas of market/industry dislocation or inefficient market segments – within our Core Industries.

We want to be the “home of choice” for founders, family-owners and corporate joint venture partners who have a purposeful use of capital, who want a flexible partner, and who believe we can complement them in executing their vision.

SECTOR

AVIATION

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo Leader(s): Mark Perez

Zephyrus, Virgo’s Aviation Platform, (i) provides creative capital solutions to airlines and lessor counter-parties who have fleet management needs and (ii) engages in engine trading & leasing, connecting the buyers and sellers of engine assets. Virgo has built a proprietary sourcing network and has substantial technical expertise in this sector. We continue to grow and diversify the Zephyrus Sourcing Platform having built a balanced portfolio of mid-life aircraft assets with good trading optionality that is complemented by a handful of engine transactions.

  • Fleet management services, executed via aircraft releasing and engine trading for commercial aircraft. Re-imagine framework.
  • Fleet management services within railcar leasing.
  • Commercial Airline
SECTOR

ENERGY

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo Leader(s): Eli Aheto

The world is urbanizing.  Consumption patterns for both Baby Boomers and Millennials are also shifting including with respect to energy usage and energy efficiency.

Power is being generated on a distributed basis with the emergence and rapid growth of renewable power assets.  This has ramifications for storage, transmission, grid management and the values of incumbent coal and nuclear assets.

The rise of US shale gas and oil has transformed global energy markets.  Trade in commodities should expand and transportations and logistics services are growing in importance to optimize the utility of new and existing energy resources.

  • Renewable power generation, storage, micro grids, transmission and grid management solutions
  • Logistics and niche services businesses
  • Energy efficiency plays with compelling unit economics
  • Virgo is focused on both growth and re-invention investments
  • Virgo seeks investments that are a hybrid of project finance and corporate private equity
  • Virgo takes a differentiated, unit economic focused approach to energy investments
SECTOR

HEALTHCARE

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo Leader(s): Pooja Goel

We have an aging developed world populace.  The US federal and state governments must address rising healthcare costs to deliver against the wellness needs of their citizens.  Consumers are also adapting to higher deductible insurance plans that create greater agency in healthcare purchase decisions.

Consumption patterns for both Baby Boomers and Millennials are shifting with an increased emphasis on services over goods in what people value.  Given demographics, there is, in particular, an increased focus on health and wellness services.

The internet provides increased access to information and, therefore, the potential for both greater price discovery and enhanced transparency into provider service quality across the healthcare industry.  Smartphones and other mobile devices allow interconnected service delivery with enhanced operating efficiencies.

  • Disruptive, multi-site, integrated care businesses
  • Chronic care focused businesses
  • Social Determinants of Health (SDoH)
  • Data-driven pharma services
  • Niche specialty pharma companies
  • Virgo is focused on both growth and re-invention investments
  • Virgo targets businesses that deliver a combination of better access to care, lower cost care and improved care outcomes (along with value-based reimbursement) in healthcare services.
  • Virgo targets pharma services and specialty pharmaceutical businesses
SECTOR

MEDIA

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo Leader(s): Brian Wade

Media is a dynamic sector with wandering consumer eye-balls, market share shifts in distribution platforms and disruptive technologies that create an evolving corporate landscape.  The method by which information is accessed and content is consumed is constantly changing with the broadening scope of digital delivery. This has ramifications for production, distribution, information collection and advertising.

Communications, media viewing patterns and human interactions have been transformed over the last twenty years by disruptive new access and distribution technologies.  These innovations have resulted in an interconnected world and the instantaneous flow of information. In a post social media world, they also impact what we value and how we think about ourselves.  Technology both interconnects us and leaves us less connected as humans.

Audiences are more fragmented.  The narrative is broader. Achieving consumer engagement is more challenging.  There is a swinging pendulum between curation and user selected content. People are seeking a different, two-way relationship with brands that advertise to them.  People are also shifting their purchasing from goods to services, including live experiences.

  • Innovative out-of-home and point-of-consumption advertising businesses
  • Live event or experience creation businesses
  • Annuity-like niche content publishing companies
  • Content production efficiency and consumer engagement enhancement businesses
  • Virgo is focused on largely growth investments.
  • Virgo targets re-invention opportunities in stable and growing end-markets.
SECTOR

NICHE INDUSTRIALS

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo Leader(s): Mark Perez

We have an aging developed world populace and growing populations in South-east Asia and Africa.  The world is urbanizing. Consumption patterns for both Baby Boomers and Millennials are shifting. These trends drive a change in who is demanding what and where.  People are shifting their purchasing from goods to services, like air travel and personal care. We are also seeing certain resources like land & water become more scarce with a larger world population.  Finally, there is an opportunity to innovate in construction, a historically inefficient business process.

The logic of “re-shoring” to the US has emerged as capital-intensive automation replaces labor and as 3D printing changes production processes.  Historic national competitive advantages based on wage arbitrage or energy availability are changing rapidly today. Trade in goods likely declines and transportation & logistics, therefore, will be transformed.  Vice versa, in an efficiently inter connected world, trade in services, in certain commodities and in ideas should expand.

  • Airline and lessor fleet management solutions – aircraft, engines etc.
  • Aerospace logistics businesses
  • Chemicals for agriculture, water treatment, personal care and construction
  • Virgo is focused on both growth and re-invention investments
  • Aircraft and engine trading and leasing investments via the Zephyrus aviation platform
  • Virgo targets disruptive and technology-enabled logistics businesses
  • Virgo targets specialty chemicals and materials businesses. The firm is seeking companies with a compelling return-on-invested capital via project-level capex such as plant expansion and/or through complementary product line development and sales growth
SECTOR

REAL ESTATE

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

Virgo is focused on both growth and re-invention investments in real estate finance via the Kavanah platform. Kavanah, Virgo’s in-house real estate finance platform, seeks small balance loan originations with a focus on highly structured and off-the-run deals where there is some collateral or loan structure complexity, or where speed and flexibility can result in compelling risk/return. Kavanah also targets operating businesses in out-of-favor or growth sectors that have material real estate collateral.

  • Growth capital for niche real estate products in select regional markets. Re-invent framework.
  • Highly structured and/or special situations financings for out-of-favor and stressed/distressed companies with significant real estate collateral. Re-imagine framework.
  • Asset purchases during the distressed phase of the market cycle. Re-imagine framework.
  • Commercial and Residential
SECTOR

SPECIALTY FINANCE

  • OVERVIEW
  • THEMES
  • INVESTMENT TYPE

The role of commercial banks has evolved in the wake of the 2008-09 global financial crisis.  As a result of post-financial crisis regulation and the evolving needs of borrowers, non-bank, specialty finance companies are the innovators and the risk-taking lenders of tomorrow.  There is presently a vibrant market for product innovation and business building in specialty finance.

In addition, with the further shift from money to mobile payments (or even crypto-currencies) we are transacting, storing wealth and saving in different ways today.

In terms of real estate finance, the world is urbanizing. Consumption patterns for both Baby Boomers and Millennials are shifting including with respect to housing and, therefore, moving, storage and transportation.  In addition, as the corporate workplace environment evolves, the office and other real estate needs of businesses are being transformed.

  • Innovative financing solutions and specialty finance companies. Differentiated products with a superior loss-adjusted return-on-capital and a large addressable marketplace
  • Niche insurance solutions
  • Asset-based payment solutions
  • Land banking transactions for niche real estate products in select regional markets
  • Differentiated cash flow streams backed by assets within real estate finance
  • Virgo is focused on largely growth investments in financial services
  • Virgo builds and creates innovative specialty finance and specialty insurance companies
  • Special situations credit and asset-based financings secured by real estate collateral via the Kavanah platform