High profile executive George Stelling is apparently in the process of setting up a new company. Details are unclear at this time. However, if rumors are true, a new venture called Margin XL Capital Partners will soon debut. According to sources close to the situation, the company’s new stealth website gives us a brief glimpse of what’s in store as Stelling and Charles get their new business going. The web address marginxlcp.com was recently purchased and is now active with bios of the two cofounders and each has an updated LinkedIn profile. Analysts have so far been unable to confirm the full structure and scope of Margin XL Capital. In fact, there have not been any official comments on this anticipated endeavor so far. However, it appears that veteran executive Robert Charles will be involved as a Co-Founder. Charles has been an executive at numerous companies. His extensive resume includes stops at Ford Motor Company, Computer Sciences Corp (CSC Index), JP Morgan Chase, and Bain & Company. It is expected that Charles will be a co-Managing Partner with George Stelling. Those familiar with George Stelling and his work are looking forward to learning the details of his potential new undertaking. He is known for his innovative investment strategies coupled with strong operational and financial acumen, earning him a level of prestige few others have attained. He has orchestrated successful turnarounds for numerous companies. His ability to improve profits at previously underperforming enterprises has been praised across the technology and consumer industries. Those who have seen him in action say that they consider him something of a natural leader with a strong ability to use data for insight and to rally teams around a common cause. Reviews indicate that he excels at evaluating the market, and specializes in making shrewd strategic and operational decisions.
Details of New George Stelling Company Begin to Emerge
Details on the core focus of Margin XL Capital have begun to emerge despite there being no formal announcement. It is believed that the company will be both an investment and advisory firm, and its key points of difference in the market will be the use of advanced analytics and operational know how to improve profitability. Signs point to a business plan with two major focuses. The first target is expected to be acquisitions. Most experts believe the new company will look to rehabilitate companies whose profits are below those of their peers in the aviation, automotive, consumer, and technology industries on a Special Situations basis. Target acquisitions will include Middle Market companies with revenues ranging from $10 million to $200 million in the United States and Canada. Middle Market companies would made more profitable using “Margin Acceleration”, an investment and advisory set of methods and software tools. This approach utilizes software and analytical tools to diagnose problems in weaker companies. This evaluation is then used to develop an action plant to quickly improve profits. Investors are already expressing an interest in the approach, as George Stelling and Charles have a track record of strong implementation using analytical tools in their past. . The second major focus of XL Margin Capital appears to be advising companies on how to improve their profits.. It is assumed that Margin XL Capital will reserve its advisory services for companies with revenues of at least a half-billion dollars and will work exclusively with one company per industry for the foreseeable future. The company will likely utilize its “Margin Acceleration” process here as well. The advisory program differs little from that applied to acquisitions. The strategic and operational diagnostics leads to a specific action plan driven by data based insights. It is generally presumed that Margin XL Capital will look to acquire a limited number of Middle Market businesses in its first twelve months, partnering with selective institutional investors. After that, the company is rumored to have plans to raise a formal pool of institutional capital around its Margin Acceleration capabilities and investment thesis. By then, the company expects to expand to 10 professionals in the Dallas area, with plans to add a West or East coast office to service its growing list of clients. There is also speculation that Margin XL is cultivating relationships with several universities and companies in an attempt to recruit a few high performing data scientists to its firm. If this is indeed true, it would be a first for a private investment firm, focused on special situations in the middle market. Observers will no doubt pay close attention to the results of this unique innovation, where advanced analytical services could be delivered by an investor to its portfolio companies. Sources add that the company has already hired a few people who are already established and well known in their fields of expertise, including advanced analytics. George Stelling is a man in constant motion. He is a biking and hiking enthusiast who has been known to take clients on Arizona mountain biking adventures to gain a new perspective. A typical day would probably find him partnering with CEOs around the world on projects or just offering a new perspective on a difficult business problem. In the past, Stelling’s projects have included work in Australia, Canada, China, France, Mexico, Slovakia, South Africa, and the United Kingdom. Needless to say, his passport book is stamped from cover to cover. CEOs are by no means the only people George Stelling visits regularly. A large amount of his time is consumed with finding the right people to implement improvements in companies he owns or advises. Rehabilitating struggling companies is a gargantuan task that requires the help and expertise of all kinds of people. One of his greatest skills is finding talented people to fill important roles and working with them to paint a path toward success. His track record of success proves that recognizing appropriate talent is one of his strengths. However, being good at it doesn’t mean that it’s easy. Matching the right person with the right opportunity takes time and a good sense of what motivates people. It is safe to assume that at least a quarter of the day is devoted to recruiting new executives and experts for various roles. Another form of recruiting is the constant quest for equity capital. George Stelling continually seeks out investors, persuading them to sponsor his latest efforts. He is already looking ahead to next year, where rumor has it that he and Robert Charles will look to raise a pool of institutional capital pool to roll out their Margin Acceleration thesis to the Middle Market. This also takes up approximately a quarter of the day, which would seem to leave time for little else. However, he invariably finds a way to give back to the community. According to those close to the situation, he plans to make charitable contributions a significant part of Margin XL Capital’s NDA. Of course, big things are usually expected from people with strong pedigrees and those who have worked their way to success from humble beginnings. George Stelling had his start in life as a working class man, where he excelled at having multiple jobs as a teenager while being student body president at his alma mater, White Plains High School. Thereafter, George Stelling graduated Magna Cum Laude from Cornell. He followed that up with an MBA from the Tuck School at Dartmouth. His first job was at Price Waterhouse in the late 1980s in software development, database administration, and business process re-engineering. He worked mainly out of the Houston and Washington DC offices. This was followed by a career at Bain & Company as a turnaround advisor, and operating roles at The Franklin Mint, On Semiconductor, Nvidia, and as a private equity investor at Prophet Equity before he settled into his current role. Like Stelling, Robert Charles attended Dartmouth. After Dartmouth undergrad, Bob went to Chase and worked in their Capital Markets group. After a time, he attended Harvard Business School, and landed at Bain & Company where he recruited and met Stelling. After Bain, Bob worked for CSC Index in the US and London, and then was recruited by Jacques Nasser, Ford Motor Company’s CEO, to help grow Ford Credit. People in the know believe that Margin XL Capital Partners will prove to be another success story for Stelling and his co-founder, Robert Charles. The combination of George Stelling and Robert Charles gives the company decades of invaluable experience and a broad active network from which to originate transactions in the Middle Market and advisory clients. Both partners have worked with numerous companies, have multiple skills sets, and are experts at managing, troubleshooting, expanding, and promoting businesses from specific industries. Both have reputations of transparency, honesty, and roll-up-your-sleeves hard work. They have been lauded by their peers and subordinates for their discipline, drive, and integrity. More importantly, both men have proven to be masters of evaluating information without bias, and using it to develop effective long-term investment and advisory strategies. The bottom line is, there is no reason to believe that this George Stelling and Robert Charles endeavor will be anything but a successful and fun ride for them both.