We rely on our proven and long standing network with single family offices and corporate finance specialists who share and understand our investment philosophy to source new investment ideas. We are focused on off market transactions that have unique characteristics regarding structure, timing, partnership and management approach. In rare cased we might also participate in limited auctions.
Our long standing track record and experience in analysing and researching company fundamentals allows us to quickly gather and understand the business model of potential investment opportunities. Creating realistic business plans that have the buy in from management and allow for alternative outcomes supports us in the judgement of any investment opportunities. Our main focus here is given to cash flow generation as a measure to value creation and protection.
While we have a very structured approach we do not want to tick endless due diligence check lists but focus on a common sense approach and want to get the big picture right. As Warren Buffett says: “It is better to be approximately right than precisely wrong”. Most important to us is our judgement based on fundamentals if a business model can be realised and what the risk is of getting there.
The way in is the way out:
All our investment ideas have a clear path to exit. We are and represent entrepreneurial investors. In that respect, we think focusing on an investment period of 4-6 years keeps investors and management disciplined in realizing business plans. However, we do not have the pressure of an institutional investor to realize investments if the company or the industry cycle is not right. Timing can make a big difference to the ultimate outcome. Accepting this factor is a precondition to become an investor in our deals.
Alternatives – a mission critical
We are perfectly aware that only few investments perform exactly the way it’s planned. One of our big advantages is that we can take entrepreneurial decisions, be it to take a detour to reach our goals or to switch from Plan A to Plan B or C. This is also reflected in our investment structures as becoming the steering wheel in our hands when needed is often the difference between gain and pain. Having alternatives ready provides us with strong control over risks taken. We also see it as one of our tasks to support our managers to growth ahead of their own plans and perspectives. Taking an outside in view allows us to support our leaders to innovate and go for new horizons.
Alignment of interest
It is our aim to fully align with our investment partners. We only propose investment projects in which we are willing to invest our own money. Our management fees are set to cover the costs and we are incentivised to realize investments to the success of all parties involved.