Private equity firms are identified as an alternative investment class that directly funds private companies to help them scale or transform the business. Most companies favor this type of investment vehicle because it gives them access to liquidity without the high interest of bank loans.
Investments from private equity firms also remove the pressures publicly listed companies go through because of quarterly earnings. It also gives management the freedom to experiment with new ways to increase revenue away from the public eye.
These advantages resulted in the growing interest of companies in private equity firms. Since The Hinterland Group transitioned from a management consulting agency to a venture capital firm – a type of private equity, several companies have already sought partnership with it.
The Hinterland Group founder and director for strategy Chase Sabina’s extensive background in creative brand campaigns and management consulting enables the firm to effectively transform partner brands and drive sales growth. Unlike most private equity firms, The Hinterland Group doesn’t just provide financing; it also brings in human capital for marketing and creative content, making it a kind of “one-stop-shop” for businesses.
Everything The Hinterland Group does to grow partner companies is heavily rooted in data and market trends. The firm creatively applies this data to build brands from a marketing first perspective.
Sabina executes his well-thought-out business model by maintaining steady retainers that fund its venture capitalism. Essentially, companies agree to deferment contracts where The Hinterland Group gets paid its agency fees plus an additional percentage upon conclusion of the contract. The firm reinvests its money in exchange for equity, voting rights, and board seats in their partner brands.
Many businesses are apprehensive with private equity firms since history suggests that most are in it for the short-term returns, squeezing out businesses’ funds with high equities. What sets The Hinterland Group apart is the deferred payment arrangements and board seats, ensuring companies the firm has vested interest in their growth.
Under Sabina’s leadership, The Hinterland Group has partnered and helped several startups and Fortune 500 companies succeed.