Whereas Stern Value Management acts as consultant in implementing its proprietary framework for value management called EVA® or Economic Value Added, SSCP acts as a transactional advisor, corporate financier and funding partner for clients. More specifically, SSCP identifies mid-sized businesses, and developing markets requiring funding and matches them with investors eager to provide financing an
d growth capital. The firm has a long-term partnering perspective, choosing as transactional advisor to forgo much or all cash from its fund-raising and transaction fees for a larger equity investment in the companies which it promotes. In its business building role as capital investment partner SSCP aligns itself with both operational and funding partners, always preferring to co-invest with knowledgeable partners. SSCPs transactional advisory functions generally complement its role as active capital investment partner. That is, SSCP actively involves itself in building the underlying companies in which it and its funding partners invest. Developing and growing scalable sustainable businesses with strong economics is a key part of its investment philosophy. The firm prides itself on finding new and creative ways to redefine how investee companies can extract value from their target markets. The firm promotes stringent and innovative corporate governance and corporate social responsibility guidelines within all the companies in which it and its partners invest. In the spirit of its sister firm Stern Value Management, SSCP encourages its investee companies to let their employees become partners in their ventures, taking less fixed pay and more profit sharing in the entities in which they work. This allows for wider merit-based reward systems to unlock superlative shareholder returns. In some cases, SSCP will employ Stern Value Management to implement such value-oriented performance and management systems since research shows that EVA clients outperform their peers by wide margins, as value generation becomes the singular focus. Stern Value Management's EVA methodology has been implemented at over 800 firms globally. This framework provides managers and employees, in some cases down to the "shop floor", with a simple, yet comprehensive variable-pay compensation programme that allows them to think and act like owners, without having to own shares. These regions are the global growth zones and share many common characteristics; namely significant requirements for capital, developing markets with major demands for basic goods and services, poor governance systems and an aspiration for applying and using proven first world technology and processes. These regions, however, require creative solutions much different from those applied in the developed world and it is here that SSCP seeks to provide maximum impact for its investee companies.
