Case Study Virtual Captive Top 5 Global Investment Bank

1
Case Study Virtual Captive (Top 5 Global
Investment Bank)

• Adventity was selected by a top 5 Global
  Investment Bank as its partner to create the
  industrys first virtual captive, generating
  significant savings and productivity gains across
  the Bank in all its key offices worldwide.
  Adventitys successful integration into our
  Clients operations has enabled a rise in Junior
  Banker morale and a smoothing of hiring costs and
  pressures at all Analyst / Associate levels.
• Formation of Virtual Captive Engagement Steering
  Committee (VCESC) to ensure timely and successful
  implementation
• Weekly project plan review
• Joint hiring effort to identify India Analyst
  class of 80 members including in person and
  video conference interviews by Client team
• Replication of client IT systems to ensure India
  team has exactly the same working environment as
  US Analysts
• Hiring and co-branding strategy discussions
• Adventity Analysts underwent 6 weeks of Client
  in-house training program, including industry
  specific training by bankers onsite at Adventity
  facilities
• Allocation of Analysts to different industry
  groups to ensure development of industry
  knowledge and close alignment with Banks
  in-house Analysts
• Adventity Analyst team promoted internally to all
  Client senior banking and management as a
  distinct analyst class versus just another
  service provider
• Currently working firmwide in all key office
  locations of the Client (New York, Chicago,
  Houston, US West Coast, London, Singapore, Hong
  Kong, Australia)
• Analysts staffed on deal teams and the work
  covered includes
• Equity / MA / Debt Comps
• Company / Industry Profiles
• Specialized research for senior banker idea
  generation
• Credit Analyses
• Industry Competitive Database Creation
  Maintenance

• Capital Structure Analyses
• Financial Modeling (LBO, Merger Consequence,
  DCF modeling)
• Investment Memoranda
• Due Diligence Summaries

Adventitys rich experience in Knowledge Process
Outsourcing has resulted in a successful
execution of the Virtual Captive model, resulting
in full integration of our high quality Analysts
and services across Clients Investment Banking
platform.
2
Case Study Independent Equity Research House

• Our Independent Equity Research Client was
  seeking to both address and take advantage of the
  challenges to the equity research industry post
  Spitzer settlement in a creative, cost effective
  manner. As the majority of listed U.S. stocks do
  not receive research coverage, there was a market
  opportunity our Client wanted to exploit.
• Summary of Engagement
• Our Client sought to create an extensive coverage
  database of small- and mid-cap U.S. stocks.
  While overall guidance is provided by our
  Clients analysts, 90 of the analysis and
  report writing is performed and maintained by the
  Adventity team.
• Sectors / Industries covered include
• Healthcare / Biotech
• Communication / Technology
• Financial
• Engagement logistics included
• Initial creation publishing of initiating
  coverage reports for target universe
• Core team of 10 Adventity Analysts progressed
  released priority list during 6 months of
  engagement
• Coverage universe expanded by several hundred
  companies following successful completion of
  initial target list
• Team expanded to provide maintenance and coverage
  of progressively expanding coverage universe
• Collaboration software deployed for workflow
  management
• Companies initiated and covered by Adventity are
  regularly presented at US investor conferences

• Energy / Commodities
• Retail / Consumer
• Diversified Industrials

Adventity enabled our Client to maintain their
core US-based Analyst strength yet expand their
coverage to 5x pre-outsourcing levels, with
further expansion planned.
3
Case Study Bond Assurance Company

• Our Client is one of the market leaders in the
  bond assurance space in the U.S., underwriting
  principal and interest payments of public
  finance, structured products and broad range of
  other fixed income deals. Rapid expansion in
  demand led to our Clients portfolio monitoring
  and surveillance practices and systems had not
  kept pace. Given their zero-loss underwriting
  standard and difficulty finding competent,
  affordable personnel, our Client turned to
  Adventity for a solution.
• Adventity undertook a 2 pronged approach Create
  a robust system then perform the surveillance
• Database Optimization and Interface Creation
• Adventitys database team in conjunction with our
  business analysts performed a full review of our
  Clients credit portfolio database
• Interviewed all end users to understand gaps,
  problems, needs, wish list
• Performed full data scrubbing and consistency
  exercises, creating reliable, useable data across
  all transactions
• Created user friendly graphical user interface
  (GUI) for data input, screening, report writing
  and analysis
• Stress-tested the combined database and interface
  with end user input
• Established help desk for regular upgrades,
  improvements and trouble shooting
• Maintenance, Screening and Analysis of Credit
  Portfolio
• Input and quality checks of monthly / quarterly /
  annual financial updates from credits
• Review of portfolio against covenants and broad
  range of credit parameters creation of
  transaction ratings flagging high risk /
  high profile transactions for deeper analysis
• Follow up deep dives in conjunction with Client
  Analysts

Adventity provided our Client with an enhanced
surveillance system and process, enabling more
regular surveillance of a larger portion of their
transaction portfolio, increasing their early
warning capabilities and further reducing the
risk of underwriting losses.
4
Equity Research division of a prominent
Middle-East based investment bank

• Our Client was created 18 months ago to
  specifically capitalize on the rapid development
  of the MA and capital markets in the Middle East
  / North Africa region. With a nascent banking
  and private equity infrastructure in the Middle
  East, our Client sought to quickly establish
  itself as the gold standard in the region for
  banking, advisory and investing services. Not
  wanting to develop an in-house equity research
  practice, Adventity represented a completely new
  way to build a research division that would drive
  our Clients thought leadership for the region,
  with no direct overhead impact on client and
  reduced management outlay.
• Summary of Engagement
• Adventity was selected to create and manage our
  Clients end-to-end Equity Research division in
  order to support its Strategic Advisory, Private
  Equity and ECM activities by providing
  tailor-made research for its own clients on the
  entire region, starting with identifying broad
  regional trends and themes in the GCC region,
  initiating coverage and moving on to pro-active
  maintenance and new idea generation.
• Sectors / Industries covered
• Energy / Commodities
• Telecom
• Geographies covered
• UAE and the Middle East
• North Africa
• Turkey
• India
• Engagement logistics
• Region-wide coverage for chosen sectors, in the
  form of initiation reports and weekly and monthly
  updates
• Core team of three Adventity Analysts released
  initiating coverage report for an IPO candidate
  within first month of engagement developed
  roadshow books and presentations for investor
  conferences
• Team expanded by 100 in less than three months,
  to provide maintenance coverage, develop new
  ideas for thought pieces on macro fundamentals
  and industry, and progressively expand coverage
  universe
• Create detailed market databases pertaining to
  industry / economy / region in a market where few
  reliable data sources exist

• Real estate and infrastructure
• Metals Mining

• Types of products
• Initiating coverage reports, earnings updates,
  event notes
• Theme-based sector reports
• Weekly ECM updates, monthly/quarterly industry
  updates, newsletters
• Marketing / roadshow documents
• Valuation opinions

Adventity has enabled our Client to focus
in-house resources solely on developing client
relationships in the MENA region, made possible
through idea driven comprehensive research
coverage
5
Strategic consulting for an Islamic Bank

• Adventity was appointed as a strategy consultant
  for a leading Islamic bank in the GCC world,
  owned by the rulers of one of the most prominent
  GCC states, and aspiring to be a global leader
  in the Islamic banking arena in the coming five
  years. This assignment was won through a
  competitive bidding process wherein Adventity was
  selected over some of the Big 5 global
  consultants bidding for the contract.
• Summary of engagement
• Macro-economic and sector analysis and forecast
• Developed GDP calculator and a Banking forecast
  model sensitive to key drivers of the economy
  like oil prices, real estate prices, imports,
  exports, interest rates etc.
• Developed detailed sector reports for real
  estate, construction, energy, power, cement,
  conglomerates, Telecom, aviation and shipping
  sectors encompassing demand supply drivers and
  models, project analysis, competitive landscape,
  key company profiles, future trends and outlook
• View on Islamic banking growth
• Comparison of various Islamic banking products
  with respect to pricing and structure, as
  compared to conventional banking products
• Competitive landscape of various Islamic banks
  across the globe on various parameters like
  product offering, profitability and capital
  structure
• Developed a house view on the Islamic banking
  growth trajectory and quantified the growth
  potential over the next five years
• Wallet sizing of Clients banking products
• Developed banking potential forecast product-wise
  and sector-wise for the coming five years
• Mapping a finely tuned orchestrated strategy for
  Client
• Provided a detailed mapping of Clients strengths
  in core focus areas and orchestrated a five year
  strategy for the bank to become the market leader
  in the region in the coming five years.
• Detailed a market entry strategy, phase-wise
  product strategy, operations strategy, expansion
  (organic and inorganic growth including alliances
  ) strategy and market positioning strategy

Adventitys ability to synergize primary and
secondary research coupled with strong domain
knowledge base of banking and various sectors has
resulted in Adventity becoming a key partner in
our Clients strategy, implementation and
operations