Investment Management, re-imagined
The traditional fund model is fielded with conflicts of interest. Beginning with a pressure to deploy capital, due to the high management fees, as well as to divest as fund term periods start to come close. We, on the other hand, have no obligation to invest and when we do, focus on creating value with the management of companies. More importantly, in our model, co-investors are not merely quote holders in a fund but invest directly in the companies. They are members of families with operational expertise and a desire to continue to learn and invest. More than financial resources, these members bring industry expertise and geographical complementarity to our network. This goes back to what these families have always done, that is, help businesses grow successfully. Without exception, all want to contribute to make more businesses flourish by providing both intellectual and financial capital. We believe our structure bring advantages both to investors and invested companies who can make decisions focused on the long term and not to find a quick exit. Our model eliminates potential conflict of interest as well as better aligns the long term nature our businesses require. Despite our connection to families we are not a Family Office, which also has permanent capital and longer term horizons, but ends up being a new business to the family with high operating costs, a challenge to retain talent and to align family interest with personnel with low skin in the game. Also, our objective is to own a collection on great businesses, not to manage the liquidity of our co-investors.
Truly long-term mindset
We believe a long-term investment horizon is fundamental for value creation. Therefore, we provide patient capital without a pre-determined time period to realize liquidity unlike traditional fund structures. This way, we make investments with a focus on increasing their earnings power over time so that we could hold our companies into perpetuity.
Fortitudine Vincimus – By endurance we conquer
Our co-investors benefit from the scale of our structure, share deal flow and take part in the investment decision process, besides acting closely in portfolio companies either through board positions or internal committees.
Therefore, our focus is not to gather asset under management but people with different backgrounds, experiences and points of view that can add value beyond simply financial capital.
We employ a disciplined value investing philosophy, with a focus on capital preservation and a margin of safety.