Scale - scaling the new company (once the strategy is fully developed) to commercially exploit the market need

The final step is to scale the NewCo. At the beginning of the scaling phase, XL TechGroup hires an external, dedicated CEO and executive management team to grow the NewCo towards an appropriate liquidity event. Additionally, external directors may be recruited to guide the NewCo going forward. XL TechGroup will continue to be represented on the NewCo's board since XL TechGroup has a vested interest in the success of the business via its controlling economic stake. Finally, XL TechGroup (in conjunction with the NewCo board) develops an exit strategy.

During this phase, the XL TechGroup management team continues to support the NewCo in a variety of ways; for example, identifying strategic partners and preparing the NewCo for, and assisting in, the implementation of an exit.

XL TechGroup believes that one of the most critical elements of the scaling phase is optimising the potential to exit through either a trade sale or IPO. XL TechGroup identifies exit scenarios early in this phase and is actively engaged with management and other investors that are involved with the NewCo.

Reducing Liquidity Risk