How we do it
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Investment Philosophy: Long-Term Value Creation
Collaborative Partnership Building Trust and Alignment
Active Management: Enhancing Operational and Strategic Value
Long-Term Stewardship Preserving the Family Legacy
Flexible Capital Structure Customizing to Family Needs
Risk Management Preserving Stability
The cornerstone of our approach is a commitment to long-term value creation rather than short-term profits. Family businesses often prioritize legacy, stability, and continuity over quick returns, making them ideal candidates for patient capital.
Value Investing
Long-Term Horizon
Legacy Focus
A collaborative approach is essential to successfully invest in family-run businesses, where the personal and emotional connection to the company is often strong.
Partnership Model
Shared Governance
Trust Building
Although not exit-oriented, our approach involves active management to unlock the company’s full potential. This requires working closely with the family and management teams to optimize performance and growth without compromising the business’s core values.
Operational Improvements
Strategic Guidance
Talent Development
Growth Capital
Our investment strategy is deeply committed to preserving the family’s heritage, values, and culture over the long term, ensuring that future generations benefit from a strong and resilient business.
Succession Planning
Sustainability and Corporate Responsibility
Non-Exit-Oriented
Recognizing that each family-run business has unique financial needs, the investment approach offers flexible capital structures to meet those requirements.
Given the emotional and financial stakes involved in family businesses, risk management becomes a central part of the investment strategy.
Minority Investments
Co-Investment Structures
Dividend Recapitalization
Conservative Leverage
Crisis Management and Contingency Planning
Diversification
Responsibility
1. Preserving Legacy and Values
Family-run businesses often carry deep-rooted values, traditions, and community ties. Social responsibility for us means respecting and maintaining these core values, even as the business transitions to new ownership. The acquiring company should:
Honor the Business's History: Ensure that the business’s mission and legacy continue to be reflected in its operations.
Maintain Community Relationships: Recognize the importance of long-standing relationships with local communities, customers, and suppliers.
2. Ensuring Employee Welfare
Employees in family-run businesses often have close relationships with ownership, and they may feel uncertain or anxious during a transition. A socially responsible buyer should:
Protect Jobs and Benefits: Prioritize job security and maintain or enhance employee benefits, wages, and working conditions.
Foster a Smooth Transition: Implement programs for leadership continuity and employee integration, ensuring clear communication to ease concerns.
3. Supporting the Local Economy
Family businesses often play a critical role in the local economy, providing employment and contributing to the community’s overall well-being. Social responsibility involves:
Keeping the Business Local: Avoid relocating the business or significantly changing operations in a way that would negatively impact the local economy.
Investing in the Community: Continue or enhance the business’s involvement in local events, sponsorships, or philanthropic efforts to support community growth.
4. Ethical Succession Planning
Many family-owned businesses struggle with succession planning, and a responsible buyer should:
Provide Leadership Continuity: Facilitate the training or retention of family members or long-term employees in leadership roles to ensure business continuity.
Respect the Family’s Wishes: Approach the acquisition with sensitivity to the family’s desires regarding ongoing involvement, allowing family members to remain part of the business if they wish.
5. Sustainable and Responsible Growth
As a socially responsible buyer, ensuring the long-term sustainability of the business is key:
Minimize Disruption: Ensure that any operational changes are done gradually and with respect to the business's ecosystem.
Environmental Responsibility: If relevant, improve the environmental practices of the business, making it more sustainable for future generations.
