OUR INVESTMENT STRATEGY IS BASED ON A DISCIPLINED AND SUCCESSFULLY EXECUTED PROCESS OF OUR 3-PILAR INVESTMENT THESIS : ‘BUY-BUILD-SELL’
We focus on attractive sectors with growth dynamics and reasonably competitive environment and on companies where our views differ from the market consensus, companies that are often out of favor, usually under-managed or under-invested by their owners. We target companies that their business model is built on market’s strategic asymmetries and is hard to match by the competition, targeting competitors ‘blind spots’. We look for substantial discount to fair value in sectors we understand and we own certain capabilities to build sustainable competitive advantage and enhance the value of the company by capitalizing effectively on its upside potential.
We have a strong track record on business transformation by developing new strategies, providing the needed capital and drastically improving operational performance.
We have proven experience with various value drivers to "build" value and we use our "4X4 Value Creation Model" to achieve it:
We go through a strategic "evaluation gap analysis" of the existing business model based on the quest of building a unique positioning and sustainable competitive advantage. In turn, a new strategy is crafted by redefying the business "core" and the growth model of the company, which will be realized by a number of organic and non-organic strategies, such as pursuing growth opportunities to business core adjacent areas of business, entering into strategic alliances or acquiring other companies.
We take an "active owners" approach to our investment and we are committed to build and support strong managerial teams. We put in place the required capabilities that are needed to implement successfully the execution of our strategy and to meet our operating performance objectives through a number of operating improvement initiatives in organization restructuring, change of metrics, systems and processes, and cost cutting and management.
Apart from the capital we provide to the company, we asses the financial health and strength of the company’s assets and we come up with an efficient financial and risk management strategy. Our aim is to reach the optimal capital structure mix that will support the growth initiatives and the working capital needs, secure stable cash flow generation flows and lower the cost of capital. The main practices we use are either re-leverage or de-leverage, working capital management, tax structure optimization and managing the dividends distribution policy.
We set up a strategic communication plan that will build further the brand equity of the company to the internal and external audiences. We build proper media relations to drive perceptions in the public and enhance the company’s image and reputation, and communicate effectively the business value story to investors, all stakeholders and employees to maximize the value added impact.
Our ultimate objective is to realize the maximum value and return from our investments after a certain amount of time after the original transaction took place. We give a special attention to exit alternatives from the earliest stages of the investment deal, and once a concrete exit opportunity is visible matching our strategic exit value criteria, a divestment process and plan is being designed in order to ensure the successful closing of the transaction.
For exit, we use the widely used exit routes such as trade sales, secondary buy-outs, management buy-backs or buy-outs, and IPOs. For us, focus on exit is an on-going job throughout the holding period and we actively preparing our investments seeking the best value realization option at time.