We pursue a low-leverage strategy acquiring controlling positions in UK-focused private companies and platforms, which offer good downside protection. We target businesses with enterprise values up to £25m, but with an emphasis on those between £5m and £15m. We consider all UK locations.
Unlike most private equity investors, our capital is not constrained by minimum return thresholds. Nor are we subject to capped holding periods. In a low return environment, we screen for the highest risk-adjusted returns available, and construct our portfolio accordingly.
Essential to our investment decision is continuity of at least some of the senior management team. Management needs to have meaningful go-forward ownership, and therefore alignment to future outcomes. We look for high quality managers with strong commercial and operational judgement, and a shared vision as to how to create value. Our other investment criteria are set out below.