Wealth & Finance International 34 A Long-Term Investor lease give us a brief, overall description of your firm does? Cambium focuses on companies which are undergoing a strategic shift, a restructuring of their operations or a balance sheet reorganisation. Cambium also acts as the local partner for privately held southern European companies that want a financial and strategic partner with local knowledge and connections in the United States as well as U.S. companies that want a financial and strategic partner in southern Europe. With over 25 years of experience in middle market investments, acquisi- tions, turnarounds, restructurings and strategic consulting, Cambium is uniquely qualified in partnering with businesses to improve operational and financial efficiency and putting together the right investor with the appropriate company and management. Cambium aims to become the partner of reference for closely held com- panies, especially family-owned enterprises, that are undergoing a stra- tegic shift, a generational change, are in need of international expansion or additional financial resources from a hands-on equity partner. Can you go into more detail about the work your firm does? Cambium is not a typical private equity fund, as we act as a ‘fundless sponsor’ putting together the best investor group for each individual in- vestment taking into account each company’s needs. Cambium invests with a stable group of private investors, many of which have invested with us over many years. Cambium is an active investor. Cambium gets actively involved in each investment, including assuming executive positions when necessary, to achieve the desired results in the shortest possible time. Cambium’s principals have a long and successful track record in turnarounds, restructurings and in setting and executing a new strategic direction for companies, opening new opportunities and markets. Cambium is a long-term investor. Cambium and its investors have a long-term outlook on their investments which allows us to think and act strategically to create long-term value, not only IRR. While we do consider exit options in our investments, exits are not our primary driver. We will retain an investment as long as we believe that the company continues to benefit from our ownership and leadership. We bring a broad operating and financial toolkit to bear on the com- panies in which we invest. We define the right strategy for sustainable development and match it with the optimal financial structure to ensure the success of our investments. • The first thing we seek to do is understand each potential invest- ment’s goals and objectives, discuss how best to achieve them, and how Cambium can accelerate the achievement of these goals. • We spend time with the company’s management and key people, walk its plants, visit its customers and suppliers to thoroughly un- derstand the business and bring new insights on how to accelerate growth or open new horizons. • We spend time and resources working closely with management in defining a long-term strategic plan and developing the implementa- tion plan to achieve the desired results within an agreed timeline. Our investment flexibility allows us to optimise our investment structure to each specific situation in order to have a meaningful impact on the success of a transaction. For many business owners, significant capital in- creases or selling equity in their business may be a once in a lifetime pro- cess. For Cambium, these financial transactions are core competencies. Cambium can serve as a trusted partner to ensure that financial pro- cesses, whether equity or debt, are carried out smoothly, with appropri- ate structures, and in the best interests of shareholders. What feedback do you receive from your customers? Our investors have been with us for many years and continue to make investments with us based on our success. Not being a fund gives our investors the liberty to decide on a case-by-case basis whether an investment fits their return goals and risk tolerance. This forces us to be extremely open and work each investment to its best outcome, not relying on one ‘home run’ to save a portfolio of bad investments. Our partners and the companies we invest in only do so when they become convinced that we bring ‘a lot more than just money’ to the table. Our monetary investment is not what differentiates our outcomes, it is the work and experience put into each and every investment that produces outsized results. What opportunities and challenges does your firm face in 2017 and beyond? We believe that our approach produces positive and steady results without relying on excessive leverage or hoping for a sale at a higher multiple. This philosophy is well tuned to produce positive results in the face of the challenges all economies will face in a world with more uncertainties, protectionism, inflation and higher interest rates. Cambium is currently sponsoring the creation of Arglass (www.arglass.us ), the first new glass container manufacturing plant in the U.S. in over 40 years. With a total investment of $180 million, Arglass will be a state-of-the- art glass container manufacturing plant built for flexibility and efficiency to tackle the part of the glass market currently served by imported glass. Company: CAMBIUM USA, Inc. Name: José Arozamena Email:
[email protected] Web Address: www.cambium-ltd.com Address: 10 E 22nd Street, New York, NY 10010 Telephone: + 1 212 935 5442 Cambium USA, Inc. is a privately held merchant bank based in New York which has, for over 25 years, invested in businesses in the United States, Europe and Latin America in partnership with families, high net worth individuals and private equity groups. We got in touch with José Arozamena to find out more about the firm’s 25 years’ worth of experience in middle market investments, acquisitions, turnarounds, restructurings and strategic consulting. P 1702WF21