Venture capital support for creating portfolio company organizational capabilities

摘要

Care UK plc, which was created in 1994 with the venture support of Sovereign Capital, operates nursing and residential homes for the elderly, the mentally ill and people with learning disabilities. Following many successful years of trading, the group has invested over £80m in new healthcare facilities. Care UK is now able to deliver a range of complex solutions including service reprovision and staff transfers. As part of its investment strategy, Sovereign has maintained a close working relationship with Care UK's management through board seats for two of Sovereign's directors and through continual contact on development issues. This proximity to the business allowed Sovereign to catalyze several key development steps for the business. The contribution of Sovereign is not merely limited to cash transfer; indeed it has encouraged Care UK's management to think more innovatively and provide effective solutions to service sector problems. Care UK has a policy and organizational structure in place that addresses how it discharges its responsibilities in relation to its investors and the broad topics covered (see Table I).