Value Investing - our criteria
We are Fundamentals Focused and apply our criteria when it comes to the businesses we partner with.
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Our Investment Framework
Our Universe
We are highly considered in our investment selection. We will invest in fewer businesses with a higher conviction for success.
Backbone Sectors
Staple, critical and physical sectors that while often overlooked and underappreciated, are ripe for digital and business transformation.
Profile
Lower mid-market (£10m - £50m revenue), self funded businesses that are innovative and scalable and not necessarily London-based.
Fundamentals
Profitable and cash generative businesses which are capital efficient with a clean balance sheet and strong team. There will be a clear market fit and growth potential driven by long-term trends.
Fundamentals Focused: Our Investment Criteria
Revenue
Consistent, strong historic
revenue delivery.
Profit
Robust economic engine that delivers net profitability.
Cash Flow
Positive free cash flow.
Balance Sheet
Clean balance sheet, with debt levels low, sustainable and serviceable.
Capital Efficiency
Return On Capital
Employed >20% (or at least top end of
industry average).
Financial Principles
Foundations
Team
Exceptional leadership teams with a proven track record of success, a deep understanding of their industry, and a genuine passion for the work they do.
Product
A genuinely innovative, differentiated, and defensible approach to addressing real-world challenges with established product market fit.
Brand
Either already a strong, differentiated brand or a business that will benefit from brand investment.
Forces
Trends
Evidence of demand-led growth and favourable macro tailwinds driving momentum.
Traction
Several years of consistent revenue and margin growth with strong potential for further development and expansion.
