Investment Matrix

What is our investment matrix?

 

We apply a disciplined approach to investing through rigorous evaluation, in-depth analysis and review from concept to final investment proposal. Once an investment recommendation is made, we consistently negotiate terms, work diligently with management, and gauge the terms of our investment, in each case to maximize value to shareholders.

 

What is our investment approach?

 

Each business we partner with an EV in the range of $50 million to $200 million; a management team of proven ability; a distinct position in the market and clear prospects for growth. In return for our investment, we typically hold a significant minority stake (25-50 percent), have proportionate board representation, and insist on ‘equal voting’ in an ExCom that decides on all fundamental and game-changing matters of the business. This structured approach defines our ‘influence rights’ despite our minority position. We will only invest in a business when our interests are aligned with the majority shareholders.

 

There are several forms for our direct equity investments in platform/target companies, including:

 

  • Growth capital investments: injecting equity capital to support tangible expansion plans via well-suited, strategic acquisitions or by building in-house production/distribution capacities;
  • Restructuring investments: facilitating the passage of a business from one generation to the next, or from a single-family culture to a corporation, in preparation of a future public listing;
  • Payout investments: the owners of a well-capitalized business may decide to unlock the value built in over the years by selling a portion of their shareholding whilst remaining fully committed for building further value;
  • Management buyouts: typically when managers and/or executives of a target company seek our co-investment and transactional expertise to purchase controlling interests from existing shareholders.